As a business owner, you may be wondering, do I need professional liability insurance, general liability or both?
This is a very common questions from business owners, and a look at what both policies are intended to cover may help you decide.
Commercial General Liability
Coverage A of the commercial general liability policy provides coverage for bodily injury or property damage that the insured becomes responsible for.
Products and completed operations coverage provides coverage for the insured’s work product.
Professional Liability
In many cases, professional liability has a specialized policy based on the risks covered by the policy.
Errors & omissions provides coverage for the professional advice given by professionals, such as attorneys, accountants, and architects.
Malpractice insurance provides coverage for surgeons and physicians professional practice.
Directors and officers protects the directors and officers of a company.
People who need professional liability insurance need it because their primary product is based on their knowledge and expertise in a given situation.
Which do I need?
Where it gets confusing is when your professional work product is your advice.
Professional liability is the policy that protects you for professional mistakes. Commercial general liability policies specifically exclude coverage for the insureds profession activity.
Most professional liability policies specifically exclude claims arising out of bodily injury, property damage, or personal injury.
If you have a physical business location and your work product includes giving professional advice, chances are good, you need both.
Your professional liability policy will provide protection for your professional advice, and your commercial general liability policy will provide protection for your operations.
For more information regarding your personal situation, or if you would like to review your current coverages, please contact us.