NEXT - General Liability and Professional Liability Insurance Comparison

April 1, 2019 (Investorideas.com Newswire) Is there a difference between general liability and professional liability insurance? Click here to find out what they are and if you need them!

When examining the different types of insurance out there, you may come across general liability and professional liability insurance. What's the difference between them and when do you need them? Let's set it all out so everyone can understand it.

What is General Liability Insurance?

General liability insurance is an insurance policy which covers your business in the event of a compensation claim made by a third-party, usually a customer. It is usually set up to protect against accidental damage or injury done to this third-party. Accidents can happen at any time but they can be extremely costly to put right; costs you never want to affect your business.

When Will I Need It?

If you have a business which causes you to meet with members of the public serving as clients or customers, you need to take out general liability insurance. It is extremely important even if you work from home as clients may come to visit you there.

For example, imagine you run a wedding planning business from your home. A couple comes for a consultation and one of them unfortunately trips over your front step and breaks their leg. While this is completely accidental, they may still seek for you to pay for their medical bills as the accident occurred on your property. Taking out a general liability insurance can help you counter such claims.

What is Professional Liability Insurance?

On the other hand, we have professional liability insurance. You might think it is the same as general liability insurance but it is actually quite different, as professional liability insurance protects you in the event a client suffers personal or financial loss based upon your professional advice. It is not needed for every business but it can be a true lifeline to some.

When Will I Need It?

Professional liability insurance is a must for anyone who gives some sort of advice or consultancy as part of their business. This can range from personal trainers to graphics designers as there are many times where a client could blame you for something which has gone wrong. For example, professional liability insurance could save a personal trainer's business if a client hurts their back while exercising with poor form and blames the trainer.

This type of insurance is also a legal requirement for certain people within the medical profession. If you are a doctor, dentist, chiropractor, or another professional in this industry, you should definitely take out a professional liability insurance policy.

Final Thoughts

As can be seen above, general and professional liability insurance are indeed very different. Some business owners might not need either, some may only need general liability insurance, and some will welcome the protection professional liability insurance offers them.

What does your business require? If you regularly consult with clients in person, you might need to take out both policies to ensure that you are properly protected. Speak to a qualified insurance broker today and ensure that you have all the insurance you need to keep your business safe and secure.

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