There are many types of liability insurance coverages available on the market to keep you protected against a variety of risks. If you’re a manufacturer, you may be interested in pollution liability. Cyber liability protects you in case of a data breach. Management liability protects the senior-level officers, directors and board members of your company. In this article, we will consider general and professional liability insurance, their similarities and differences.

General Liability

General liability insurance covers instances where a non-employee sustains an injury or property damage because of your business. This can range from a customer falling in your office to their car being dinged up because of a pothole in your parking lot. If the customer chooses to file a lawsuit, your policy will cover any payments including attorneys’ fees, settlements or judgments related to the case.

Professional Liability

Professional liability insurance provides coverage specifically regarding your business output. It’s most widely known as malpractice insurance due to its popularity among healthcare providers. However, other business owners ranging from lawyers and interior designers to manufacturers should also carry professional liability as it protects against lawsuits brought about by third parties who claim that an error on your part led to them experiencing losses. Like general liability, your professional liability policy will pay for all legal fees associated with such a case.

Figuring out which liability coverages you need can be a challenge for new business owners. The key is to work with an experienced agent to ensure that you get the coverages that are right for you.