Many business owners assume that one type of liability insurance covers all their needs, but that’s not how the system works. QuoteBroker Insurance Services, serving Valencia, CA, helps businesses understand the critical differences between general liability and professional liability protection to ensure complete coverage.
General Liability Covers Physical Risks
General liability insurance protects your business from bodily injury and property damage claims that occur on your premises or as a result of your business operations. This includes situations like a customer slipping on your wet floor, accidentally damaging a client’s property while delivering services, or causing an injury during normal business activities. Think of it as protection against physical accidents and tangible damages that happen in the real world.
Professional Liability Protects Against Service Errors
Professional liability insurance, also called errors and omissions coverage, focuses on mistakes in the services you provide. If you give bad advice, make an error in your professional judgment, or fail to deliver promised services, this coverage steps in. For example, if an accountant makes a calculation error that costs a client money, or a consultant provides advice that leads to financial losses, professional liability insurance covers the resulting claims.
Why You Might Need Both
Many businesses require both types of coverage because they face risks in multiple areas. A marketing agency might need general liability for client visits to their office and professional liability for campaign strategies that don’t deliver promised results. The key is understanding that these policies complement each other rather than overlap.
Choosing the right combination of liability coverage depends on your business risks and operations. Contact QuoteBroker Insurance Services, serving Valencia, CA, to evaluate which types of commercial insurance products your business needs most.
