In general, insurance is a financial protection that helps individuals or businesses be protected against the risk of financial loss. Many types of insurance can help protect you and your business from unexpected events or accidents.

In this article, we’ll be looking at general liability and professional liability insurance. These types of insurance cover many scenarios but have some important differences.

Difference Between General Liability & Professional Liability Insurance

General and professional liability insurance are both types of business insurance that can help protect you from financial loss in the event of a lawsuit. These policies generally cover your legal defense costs and any settlements or judgments resulting from claims made against you.

The difference between the two types of insurance usually depends on who your policy covers and what it covers.

General Liability Insurance

General liability insurance covers any business-related claims made against you. It can help protect you from lawsuits that involve injuries sustained on your premises and those that occur onsite.

Small business owners should consider this insurance as part of their overall business liability coverage.

Coverage of General Liability Insurance

Product Defect: If a customer is injured by a defective product, such as a broken automobile part or an electric appliance, general liability will cover the cost of their medical bills, lost wages, and other damages they may be entitled to receive.

Personal Injury: If someone falls on your property and is injured, general liability will cover the costs associated with their injury.

Property Damage: If a customer’s vehicle is damaged while parked on your property, general liability will cover any repairs they need to get their vehicle back in working order.

Reputation Damage: If you are ever sued for slander or libel, general liability will cover any financial damages from your actions.

Professional Liability Insurance

Professional liability insurance protects you against claims related to your professional services. It covers claims that arise from errors and omissions in the performance of a service or advice given.

A business that may need to purchase professional liability insurance includes:

Doctors, dentists, and other medical professionals
Land surveyors and architects

Coverage of Professional Liability Insurance

Professional liability insurance covers any claims related to your professional activities, including:

Medical Malpractice: Claims made by patients or family members who believe that medical professionals or facilities provided negligent care.

Legal Malpractice: Claims made by clients who believe their case was mishandled by lawyers or judges acting on behalf of their case.

Accounting Malpractice: Claims made by clients whose businesses suffered losses due to bad accounting practices or advice from accountants, auditors, and bookkeepers.

Tax Malpractice Claims: Claims made by business owners who believe they have wrongfully assessed taxes by accountants and tax preparers.


One is not better than the other. Rather, the type of insurance you choose for your business depends on the risks you face. We hope this article has given you a better understanding of the differences between these two types of insurance and what they can do for you.

If you’re one of the thousands of businesses that require general liability insurance in Philadelphia, please get in touch with Pascal Burke Insurance Brokerage Inc. We’ll help you protect your business if something goes wrong so you can focus on what matters most.