Understanding the difference between professional liability and general liability insurance is crucial for protecting your business from the right types of risks. At Modern Risk Management, serving Houston, TX, we help business owners identify which coverage types match their operational exposures and industry requirements.
General Liability Covers Physical Risks
General liability insurance protects your business from third-party claims involving bodily injury, property damage, and personal injury that occur on your premises or result from your business operations. This coverage handles situations like customers slipping and falling in your office, your employee accidentally damaging a client’s property during a service call, or someone claiming your advertising violated their trademark. Nearly every business needs general liability coverage, regardless of industry, as physical accidents and property damage can happen anywhere business is conducted.
Professional Liability Addresses Service-Related Errors
Professional liability insurance, also called errors and omissions coverage, protects against claims arising from professional mistakes, negligent acts, or failure to deliver promised services. This coverage is essential for businesses that provide advice, expertise, or professional services. Consultants, accountants, lawyers, architects, real estate agents, and technology professionals typically need this protection. If a client claims your professional advice caused them financial loss or you failed to deliver services as promised, professional liability coverage handles the resulting lawsuits and damages.
Determining Your Coverage Needs
Many businesses need both types of coverage. Service-based companies often require professional liability for their expertise and general liability for their physical operations. Product manufacturers might need general liability but not professional coverage.
Choosing the right liability protection requires careful evaluation of your business risks. Contact Modern Risk Management, serving Houston, TX, to assess your commercial liability exposures and design appropriate coverage for your operations.
