General Liability Versus Professional Liability Insurance: What’s the Difference?

Operating any type of business involves risk or liability. Fortunately, there is small business insurance that can protect you from the financial impact of those risks. Two of the many types of coverage available are professional liability insurance (also called errors and omissions or E&O insurance) and general liability insurance. When it comes to general liability versus professional liability, it can be difficult to know which type of coverage you need.

Knowing what these policies cover, and the difference between general liability and professional liability, can help you understand their value and whether you need them.

What Does Professional Liability Insurance Cost?

Professional liability insurance policies from biBERK start at around $300 and can go up into the thousands. Your exact professional liability insurance cost is calculated based on multiple factors, including your industry, the level of coverage you choose, how long you’ve been in business, how many employees you have, your annual revenue, and the policy limits you need. 

And with biBERK, you don’t pay broker fees and other unnecessary fees, which can save you up to 20%. It's affordable coverage that protects your small business from financial harm.

What is General Liability Insurance?

General liability insurance can protect your business from unforeseen claims made against it. This can include damage to customer property, bodily injury to non-employees, product liability, libel, slander, and copyright infringement.

A common example of where a general liability insurance policy can provide financial protection is a slip-and-fall accident at your place of business. Someone you don’t employ—a customer, delivery person, etc.—takes a spill while at your office, breaks their arm, and sues you for the cost of their medical bills. Having the right coverage means you probably won’t have a large out-of-pocket expense related to the incident.

What Does General Liability Insurance Cost?

General liability premiums start at $275, with most of our customers paying less than $1,000. And here again, we sell our small business insurance policies directly to you, which means there’s no markup to cover fees from middlemen or brokers. Consequently, your savings over other providers can be substantial.

What’s the Difference Between General Liability Insurance and Professional Liability Insurance?

While both types of policies offer important protection, general and professional liability insurance are designed to address different risks. 

Professional liability protects your business from the financial impact of third-party claims for abstract risks like mistakes you are accused of making during the course of providing professional services. General liability mainly covers the cost of physical incidents—damage and injuries.

Do I Need Both General Liability and Professional Insurance?

If your business provides professional advice or services, you probably need both small business professional liability insurance and general liability insurance (and possibly other policies like commercial auto). If you’re not in that type of business, you may not need professional liability, but getting general liability insurance is likely still a good idea.