What is the Difference between Professional Liability and Commercial General Liability Insurance?

As a professional, being up to date with the latest insurance policies is a must. After all, simply going to work each day entails a good number of risk. This is why you should never underestimate the importance of being adequately covered under the right insurance policies.

So which policies are the “right” ones? While this might vary from person to person, usually a professional working in a field where the possibility of a person filing a lawsuit against them exists should be covered under a professional liability insurance policy.

It is important to note, however, that this type of policy is not the same as a commercial general liability insurance policy and that the two should never be confused with each other. In simple terms, a professional liability insurance policy protects the insured from financial loss associated with a professional negligence or an error or omission that occurred during the course of their work. Such negligence or error tends to vary depending on the person’s profession. As an example, a lawyer might be sued for breaching their fiduciary duty if they take advantage of their position to gain a profit at the expense of their client. If the lawyer is uninsured, then they have to the pay the fees associated with this lawsuit out of their own pocket. If they are unable to do so, then going bankrupt is often their only option left.

On the other hand, a commercial general liability insurance policy extends to cover claims related to actual physical damage incurred. Such damage can include bodily injury, personal injury and even property damage. As an example, it is not uncommon for people to fall and hurt themselves only to hold the owner of the office or premise liable and proceed to sue them. While this might be difficult to believe, it happens on a regular basis. How do you know that it won’t happen to you?

As a professional—especially if you own an office—your best bet is to arm yourself with those two types of coverage. Only then will you be able to safeguard the future of your profession to the best of your abilities.

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