Professional Liability Insurance Vs General Liability are extremely similar in that they both cover legal expenses if you are found to be accountable for a certain sort of damage.
The difference between professional liability vs general liability is the type of damage covered.
Professional liability insurance will protect you if you are found accountable for financial loss as a result of your professional service or counsel, however general liability insurance will protect you if your company is held legally responsible for physical harm or property damage.
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Both general liability and professional liability insurance cover common small business liabilities, but they cover various types of lawsuits. Depending on your risks, you may need to purchase one or both policies.
When deciding between general and professional liability insurance, there are a few factors to consider.
What is Professional Liability Insurance?
Depending on the business, professional liability insurance is often known as errors and omissions insurance or malpractice insurance. Its protection is limited to claims arising from professional services. It provides coverage for financial damages.
Professional liability insurance can protect you if you give improper advice to clients or misinterpret the facts and outcomes
An example of professional liability insurance for nurses is when a client/ patient sues a Nurse because of false medical advice that led to the client’s health being worsened
What is General Liability Insurance?
General Liability Insurance protect your organization from common claims that every organization may face.
It is a form of coverage that covers your company from physical injury claims sustained on your commercial building or while using your product; damage to the complainant’s property; or damages caused by defamation, perjury, copyright infringement, and other circumstances. Physical damages are covered by general liability insurance.
In the clinical setting, an example of General liability insurance covers the claims that a patient sustained injuries and bed sores due to inadequate protective facilities of the hospital
Differences between Professional liability insurance vs General liability?
There are several Differences Professional liability insurance vs General liability insurance that may help you decide which coverage or policies are best for your company;
Different risk exposures are covered by general liability and professional liability-General liability insurance may protect your company against a wide range of claims, including bodily injury, personal harm (due to defamation, slander, etc.), property damage, legal fees, product liability, and even industrial production injuries.
Professional liability insurance, on either hand, protects professionals who give incorrect advice, behave in gross negligence, violate intellectual property rights, or falsify themselves or their services.
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Physical damages are covered by general responsibility, whereas financial damages are covered by professional liability- Product liability insurance is included in General liability coverage for Medical Doctors, Nurses, and other health care providers. This policy protects the insured from lawsuits arising from wrong medical advice and physical harm that causes bodily damage to the patient and worsens their health.
Though this appears to be the area of professional responsibility, the dividing line is bodily injury. Professional liability insurance covers disputes involving financial losses caused by someone else’s products or services.
Similarities in professional liability insurance vs general liability?
Here’s how professional liability insurance vs general liability are similar: Associates, customers, or the law needs it- Depending on the sector or service your company provides, certain states need professional liability insurance. Many states, for example, require Nursing staff to obtain malpractice insurance, which is a type of coverage under a professional liability policy.
Both insurance tackle (distinct) unavoidable obligations-It’s an unfortunate fact that as a Nurse: you are at risk for lawsuits. Healthcare professionals are at a high chance of facing lawsuits at one point in time.
Your general liability and professional liability policies work together to mitigate your expenses when accidents and oversights land you in legal trouble.
Do I need both general and professional liability insurance?
If you face both sorts of hazards, you will require both forms of insurance. Furthermore, as a condition of your contract, an employer or customer may demand you to carry professional liability, general liability, or both.
Which policy is best for your company?
In just about all circumstances, both insurances are required to effectively protect your company against the high costs of unexpected claims. This is especially true if you operate in the professional services business and rent or own public-access commercial property.
There are a few situations in which you may be able to avoid having either coverage, but we do not recommend that you do so. You never know when someone could have an accident in your building or accuse you of Malpractice.
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