Does My Company Need Both General Liability and Professional Liability?

Does your company need both general liability and professional liability coverages? Here's your guide to understanding the difference between the two and the coverage that you might need. .
As a small business owner it can be confusing trying to navigate all of your business risks and how to address them. 

A super common question we’re asked is does my small business really need professional liability insurance and general liability insurance?

The honest answer is it depends. It depends on your business, industry, and operational setup. This article should give you a good understanding of what each coverage does and some insight on what kind of coverage you may need.

What’s The Difference Between Professional Liability and General Liability? 

Professional liability insurance and general liability insurance share a common goal. Both are designed to protect you and your business against business liabilities and the potentially devastating financial consequences a lawsuit could bring. They’re designed to minimize the impact on your business so that you’re able to continue operating following a claim.

Where they differ is in the types of losses they cover. General liability insurance responds to claims against your business involving bodily injury and property damage resulting from your business operations. Professional liability responds to claims of negligence in your rendering of services or errors and omissions that cause your client financial damage.

Professional Liability Insurance

 Negligence and Finacial Losses

Also known as errors and omissions insurance, covers negligence related to professional services of advice, generally related to financial losses vs. physical losses

  • Negligence
  • Misrepresentation
  • Inaccurate advice

Professional Liability Insurance might be for you if:

  • Your client contracts require you to carry the coverage
  • You offer professional services, advice, or consulting directly to clients

Industries that often need professional liability include:

  • Financial services
  • Accountants
  • Consultants
  • Healthcare professionals
  • Technology professionals
  • Marketing and advertising agencies
  • Interior designers
  • And More


General Liability Insurance

 Bodily Injury & Property Damage


Covers negligence related to physical injury to people and damage to property arising from your business operations

  • Bodily injury claims (other than employees) if someone gets hurt at your business
  • Medical payments if someone gets hurt on your business property
  • Property damage you, your employees, or contractors cause
  • Advertising errors and injuries resulting from copyright issues
  • Reputational harm is someone sues you for causing harm to their reputation and more

General liability insurance might be for you if:

  • Have a physical location such as a store, office, or building that’s open to the public
  • Handle or interact with client property often
  • Market your product or services publicly, particularly on social media
  • Are required to carry the coverage in client contracts

Industries that often need general liability insurance include:

  •  Most small business owners
  •  Artisan contractors
  • Landscaping companies
  • Retailers
  • IT contractors
  • House Cleaners
  • And more

Does My Business Need Both Professional Liability Insurance and General Liability Insurance?


If you have risks in both of the columns above than its likely that you need both coverages. Almost every business engages in activities that make general liability a necessity. Similarly, many businesses are providing some amount of professional services and would benefit from the protection of a professional liability policy.

The two polices work together and compliment one another to provide broad coverage that can protect your business from many of the common risks small businesses face.


How To Get a Quote For Professional Liability and General Liability Insurance

Getting a liability quote for your small business with InsureGood is fast and easy. Fill out your info here and we will be in touch. The entire process shouldn’t take up more than 15 minutes of your time.

Once we have your info we’ll quote you with several of our best carriers and reach out to you with options for professional liability and other coverages you may need.


The Final Word

The risk of lawsuits comes with business ownership but there are things you can do to minimize your overall liability risks so that you can focus on taking risks where they’ll pay off in your business.Your business is important – make sure you protect it.

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