Professional Liability vs. General Liability: Which Does Your Business Need?

Choosing the right insurance is a crucial step in protecting your Texas business. Understanding the differences between professional liability and general liability insurance can help you make informed decisions about your coverage. Both policies offer essential protections but address different types of risks businesses may face.

What Is General Liability Insurance?

General liability insurance may financially protect your business from common risks during everyday operations. This coverage typically helps with claims related to:

• Bodily injury to third parties (such as customers or visitors)
• Property damage caused by your business activities
• Personal and advertising injury, like libel or slander

For example, if a customer slips and falls in your store or if you accidentally damage a client’s property while working on-site, general liability insurance may help cover legal fees, settlements or medical costs. This type of policy is often considered essential for most Texas businesses, regardless of industry.

What Is Professional Liability Insurance?

Professional liability insurance, sometimes called errors and omissions (E&O) insurance, focuses on claims arising from the professional services or advice your business provides. This coverage is especially important for businesses that offer specialized expertise, such as consultants, accountants, real estate agents or healthcare providers. It may help with claims involving:

• Alleged negligence or mistakes in your professional services
• Missed deadlines or incomplete work
• Failure to deliver promised results

If a client claims that your advice caused financial harm, professional liability insurance may help cover legal defense costs and settlements, even if the claim is unfounded.

What Coverage Does Your Texas Business Need?

The right coverage depends on the nature of your business. Many businesses benefit from having both types of insurance, as they protect against different risks. For example:

• Retailers and contractors often start with general liability insurance.
• Professionals who provide advice or services may need professional liability coverage.
• Some businesses, such as technology firms or consultants, may require both.

The team at My One Stop Insurance Agency can help you assess your risks and tailor a policy that fits your unique needs. Contact us today to discuss your options and get personalized guidance.

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.