Professional Vs. General Liability: Which Do You Need?

Differences Between Professional and General Liability in San Diego, CA

General liability insurance is an essential form of coverage for all active contractors and agencies. This coverage helps professionals assume financial responsibility for any losses they cause. If your agency performs work on someone’s residential or commercial property, any injuries your workers sustain will be covered by your general liability plan. Should you cause property damage during the work process due to unforeseen developments, general liability will offer financial protection for this as well. Given the amount of risk control these plans provide, it can be difficult for contractors to secure high-paying projects without it. But do you also need professional liability insurance? The insurance experts at American Tri-Star Insurance are here to help you determine which of the two you might need.

Getting Work without General Liability

Licensing and insurance go hand in hand when it comes to determining the legitimacy of professional service providers. When making hiring decisions, most consumers are careful to ensure general liability is in place. This is vital for protecting financial interests. If no coverage or insufficient coverage is bound, agencies and professionals will not be asked to bid for work and they’ll have an extremely hard time building robust customer bases.

What Professional Liability Covers

Professional liability is used to supplement general liability insurance rather than replace it. It covers practicing professionals against any legal claims made concerning the performance of their duties. General liability covers damages and loss resulting from unpredictable accidents and events such as falling or malfunctioning equipment and employee injuries at job sites. Professional liability, however, is bound to protect providers from their own oversights and mistakes. The assumption is that skilled professionals should be capable of handling their industry-specific duties without any major slip-ups. In reality, problems can and often do occur during the performance of professional duties no matter how well trained a provider might be.

Professional Liability Is Also Referred to as Errors And Omissions

If you’ve heard the term “errors and omissions coverage” before, this was being used to refer to professional liability. If a plumber forgets to install a key component in a homeowner’s plumbing system and this oversight leads to a massive property flood, professional liability will cover the resulting damages. General liability will not. If you are a popular wedding planner and accidentally double-book a prized venue for two different couples on the same day, your professional liability insurance will cover the legal claims resulting from this mistake.

To learn more about professional and general liability, don’t hesitate to call American Tri-Star at 619-272-2100. We can answer any questions you might have about commercial insurance in San Diego, as well as auto, home, and bond insurance. Get your free quote today for a low insurance rate to help protect your business.