How to Plan a Safe Fundraising Event

Protecting your business from risks is essential. Two common insurance types—general liability and professional liability—offer distinct protections. Understanding their differences can help you decide which coverage fits your needs or if you need both. 

What Is General Liability Insurance? 

General liability insurance covers claims of bodily injury, property damage, or personal injury caused by your operations. It’s a must-have for most businesses. 

Who Needs It? 

Any business owner who has assets at risk should have general liability insurance.  

What Is Professional Liability Insurance? 

Professional liability insurance is a specialty coverage that protects against claims of negligence, mistakes, or substandard work in services provided. Depending on the industry, professional liability is also called Errors & Omissions (E&O) insurance, medical malpractice, or lawyers professional liability.  

Who Needs It? 

• Consultants, financial advisors, accountants. 

• Professionals like lawyers, engineers, architects, doctors, advertising executives, or designers. 

KEY DIFFERENCES
Feature	General Liability	Professional Liability
Focus	Physical injuries, property damage	Errors, negligence, service-related claims
Example	Customer slips in your store	Client sues for bas financial advice
Who it Protects	Businesses with physical operations	Professionals offering services

 

Do You Need Both? 

Many businesses need both. For instance, law firms need general liability for general claims related to the business location and professional liability for errors in their work. Similarly, service-based firms with client-facing offices need general liability in addition to professional coverage. 

Evaluate your business activities to determine what coverage you need. Contact us for further guidance and recommendations. 

NON-PROFIT INSURANCE SOLUTIONS