General Liability vs. Professional Liability: Which Do You Need?

Choosing the right insurance for your business is a crucial step. At King Insurance, we know that Georgia business owners face a variety of financial risks, and understanding the difference between general liability and professional liability insurance can help you make informed decisions about your coverage.

Understanding General Liability Insurance

General liability insurance is designed to cover your business from claims involving bodily injury, property damage and certain types of personal injury to a third party that may occur on your premises or as a result of your operations.

For example, if a customer slips and falls in your store or if you accidentally damage a client’s property while working at their location, general liability insurance can help cover legal fees, medical expenses, repair costs and settlements.

This type of coverage is often considered essential for most businesses, especially those with physical locations, employees or frequent interactions with the public. It’s a foundational policy that helps manage everyday risks.

What Is Professional Liability Insurance?

Professional liability insurance, sometimes called errors and omissions (E&O) insurance, focuses on claims related to the professional services or advice your business provides. If a client alleges that your work caused them financial harm due to a mistake, oversight or failure to deliver services as promised, professional liability insurance can help cover legal defense costs and damages.

This coverage is often especially important for consultants, accountants, real estate agents and other professionals whose expertise and advice are central to their business. In Georgia, many service-based businesses and licensed professionals may be required to carry this type of insurance.

Which Coverage Is Right for Your Business?

The right insurance depends on the nature of your business and the risks you face:

• Choose general liability insurance if you interact with clients in person, operate a storefront or want protection from common third-party claims.
• Consider professional liability insurance if your business provides specialized advice, consulting or professional services where errors could lead to financial loss for your clients.

Many Georgia businesses benefit from carrying both types of coverage for comprehensive financial protection.

Our team at King Insurance is here to help you assess your risks and tailor a policy that fits your needs. If you’re unsure which coverage is right for your business, we’re ready to guide you through your options.

Contact us today to discuss your insurance needs with our experienced team.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.