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Workers Compensation

  Professional Liability vs General Liability vs Workers Compensation

There are several terms in the business insurance industry that are often confused. Three of these commonly confused terms include general liability, professional liability, and workers compensation.


It is vital that you understand the difference in these terms in order to make sure you obtain the coverage you actually need. Let’s take a look at the three in detail to create a clear picture.

General Liability vs Professional Liability


Both professional and general liability protect your business from client claims, but how they do that is quite different. General liability is- in its simplest definition- coverage for physical damages and bodily injuries caused by your business operation.


Let’s say that you renovate homes for a living and you have just completed a project. Upon moving back in, a family member falls down the stairs due to a faulty handrail. The family could sue you for damages and medical costs. General liability would take care of such a situation.

Professional liability, on the other hand, is for financial and other non-physical loss or damage. It typically covers negligence related to professional services that you provide. Perhaps a client sues you for not fulfilling a contract on time, or for causing a financial loss due to a bad investment strategy. If you are found at fault, professional liability would cover you.


Liability vs Workers Compensation


While both types of liability are intended to cover client losses, damages, and injuries, workers compensation is coverage for your employees. If your employee slips at work or injures their back due to work related activities, workers compensation covers their medical expenses and some loss of income.


Another difference is that while general liability and professional liability are not always required, they are for some businesses. Workers compensation, on the other hand, is a state mandated program. Typically, even if you are a small business with only one employee, you are required to carry workers compensation. You should always check your state requirements for specifics to ensure you get the right protection.


Even though professional and general liability are not always required, they are an essential step towards protecting your company from any financial losses. Leaving your company unprotected can lead to undesired consequences- all the way to having to shut down.


Don’t let your business be unprotected. Call Geiger Insurance today for more information on how to cover your business the best way possible. We are happy to help you find the best insurance to meet all of your business needs.

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