General Liability vs Professional Liability Insurance
If you’ve ever wondered about the difference between general liability insurance and professional liability insurance, you’re not alone. Both types of coverage:
- Offer essential protection unique to your needs
- Pay for costly claims and lawsuits common to your line of work
- Work in tandem to better protect your business
- Can be purchased separately or with other types of insurance
- Cover different types of risks your business may be exposed to
Like a pile of stockroom boxes, let’s break it down and determine which types of insurance your business needs to stay protected.
How Are General Liability and Professional Liability Insurance Different?
The main difference between general liability vs professional liability insurance comes down to what they cover: general liability covers the physical risks caused by your operations, while professional liability covers the financial harm caused by your services.
General liability protects against physical risks, like bodily injury, property damage, advertising injury, and medical payments to third parties.
Professional liability covers financial harm caused by negligence, missed deadlines, or failure to perform your professional duties.
How Are They Similar?
Despite the differences, both types of policies cover third-party claims. Whether it’s a slip-and-fall or an unfortunate piece of advice you gave that harmed someone else, general and professional liability insurance is designed to shield your business from financial fallout.
These coverages also help you fulfill contractual requirements to be employed or conduct business. Most people find they need one or both of these coverages to secure jobs, land business deals, sign contracts, or even attend events as a vendor.
What is General Liability Insurance?
Commercial General Liability Insurance (CGL) is coverage intended to protect businesses from third-party bodily injury and property damage claims. Sometimes you’ll see it called public liability insurance, since it’s specifically designed to protect your business in the event of accidental harm caused to the public.
General liability is often the first type of insurance business owners think about because it’s the most common coverage businesses are required to have. It also covers some of the most common accidents, like a client slipping on your premises or an employee damaging someone’s property.
What Does General Liability Cover?
General liability covers injuries and damages to others arising from a business’s daily operations, with slip-and-fall accidents being among the most common claims. It’s designed to cover third-party claims of:
- Bodily injury: If someone gets hurt due to your business, whether it’s from a slip-and-fall or foodborne illness
- Property damage: If your business causes damage to someone else’s property, like breaking a vase or damaging a client’s home
- Damage to rented premises: If your business leaves damage in a rented space, like scuffs from a booth or an accidental fire in a space you rent for work (only covers fire damage after seven days)
- Personal and advertising injury: If your actions of libel, slander, invasion of privacy, or wrongful eviction lead to financial harm
Every policy has limitations, so it’s crucial to understand what’s not covered. Things like auto accidents, employee theft, or work-related injuries are excluded, and may require you to get additional coverage like commercial auto, surety bonds, or workers compensation. Always refer to your policy to learn more about exclusions and limitations.
Who Needs General Liability Insurance?
Every business needs general liability insurance. It can reduce or eliminate the cost of claims, meet insurance obligations, and protect your livelihood.
Businesses that are commonly required to carry general liability coverage include, but are not limited to:
- Artists and crafters
- Bartenders
- Beauty and bodywork services
- Cannabis businesses
- Cleaning services
- Consultants
- Educators and tutors
- Entertainers
- Fitness and health professionals
- Food and beverage services
- Landscape services
- Manufacturers and distributors
- Life coaches
- Online sellers
- Pet care services
- Photo and film services
- Retailers and wholesalers
- Vendors and exhibitors
Virtually all businesses are exposed to risks that could result in costly claims, from boutique retailers to service-based professionals. While it may not be required by law or as a contractual condition, it’s highly recommended for any business that interacts with the public or handles physical goods.
If you’re doing business, you’re likely at risk, and general liability insurance helps you manage those risks.
How Much Does General Liability Cost?
General liability coverage costs an average of $20 per month* for most Insurance Canopy policies.
The total costs of insurance can vary depending on factors like:
- Your business type (and the risks associated with it)
- Your business size (e.g., annual revenue, number of employees)
- Industry and daily operations
What is Professional Liability Insurance?
Professional liability insurance is protection from financial loss and legal expenses that arise from negligence, mistakes, or oversights in the services you provide.
Also sometimes called Errors & Omissions (E&O) insurance or professional indemnity insurance, it’s essential for any business offering expert advice or services. It is designed to pay for claims due to a service-related issue. Unlike general liability, professional liability covers you for risks related to your professional actions, or lack thereof.
What Does Professional Liability Cover?
Professional liability covers financial losses resulting from errors or negligence in the advice or services you provide.
- Negligence: If you failed to deliver services with reasonable care or made an error in your work that led to a client’s financial loss, this insurance can cover the legal costs and damages.
- Inaccurate advice: Sometimes, advice doesn’t pan out. If inaccurate or misleading advice causes harm, E&O insurance can step in.
- Omissions: Failing to provide important information, advice, or services can also lead to lawsuits. Professional liability covers the financial consequences.
As a professional, you’re expected to have expert knowledge and skills in your field. However, if your actions cause your client financial harm, you could face costly claims and lawsuits that are expensive to defend. That’s where professional liability insurance can step in to help.
Who Needs Professional Liability Insurance?
Anyone who provides advice or professional services for a fee should carry professional liability coverage. Some industries where this insurance is common include:
- Accountants and tax professionals
- Architects and engineers
- Beauty professionals
- Coaches and trainers
- Consultants
- Graphic designers
- Healthcare professionals
- Interior designers
- Lawyers
- Real estate agents
- Photo and video professionals
- Teachers and tutors
Professional liability insurance is crucial if your work involves consulting, design, legal services, and other advisory roles.
How Much Does Professional Liability Cost?
Professional liability coverage costs an average of $20 per month* for most Insurance Canopy policies, but like general liability, the cost of coverage varies.
Your premiums depend on factors such as:
- Your business type
- The risk involved in your services
- The coverage limits you need
Professional vs. General Liability Insurance: Which is Best for Me?
Most businesses start with general liability insurance to protect themselves against physical risks in their day-to-day operations. Anyone who offers professional services, workshops, or advice also needs professional liability insurance to cover errors or omissions in their practice.
Choosing the right policy depends on your business activities and risk exposure. Some policies include professional liability in the base plan in addition to general liability. Others offer it as an optional coverage you can add to your policy.
Insurance Canopy can help you navigate the insurance world, offering tailored solutions that ensure you’re covered from every angle.
Additional Insurance Coverage You May Need
General liability and professional liability insurance are just the starting point. Depending on your business needs, you may want to consider other types of coverage:
- Cyber Liability
- Inland Marine
- Liquor Liability
- Product Liability
- Surety Bonds
- Workers Compensation
- Business Owners Policy (BOP)
- Commercial Property
Why 250,000+ Small Businesses Choose Insurance Canopy
Running a business means wearing many hats, but being an insurance expert doesn’t have to be one of them. Insurance Canopy is here to protect your business with easy-to-manage policies customized to your unique needs. Whether you need general or professional liability insurance, we’ve got your back — and we’re here to help you every step of the way.
Join the hundreds of thousands of businesses already trusting Insurance Canopy to protect their small business dreams!
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026 -
Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026 -
Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026 -
Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026 -
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025 -
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025 -
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
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December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
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December 6, 2025
Professional Liability Insurance vs General Liability Insurance FAQs
What is an Example of a Professional Liability?
Some examples of professional liability claims include:
- An interior decorator failed to inform a designer that furniture would need to be wall-mounted rather than floor-mounted. As a result, everything needed to be redesigned at a cost of over $7,500.
- A photographer was contracted to photograph an event. Their memory card failed, causing them to lose all the photographs. The client sued the photographer to reimburse the cost of the services. $5,000
- A notary was sued for negligence because a property was transferred when it should not have been. The investigation revealed that the notary’s signature and stamp were forged. The notary was not found negligent, and the case was dismissed, but the defense costs still came to $9,000.
Claim examples are based on internal and external data and research. All policies have conditions, limitations, and exclusions. Please read the policy for exact verbiage. Claim scenario circumstances vary in nature, and similar claims do not guarantee coverage.
How Do I Determine the Right General and Professional Liability Coverage Limits for My Business?
The best way to determine the proper general and professional liability coverage limits for your business is to:
- Check for any insurance requirements you need to carry
- Assess what risks your business may have
- Understand what different types of coverage you may need
We recommend talking to a licensed, non-commissioned professional, like our support team at Insurance Canopy. They’ll help you assess your business’s risks and customize a plan that fits your needs.
Do I Need Liability Insurance if I Already Have an LLC or Business Entity Protection?
Yes, you need liability insurance even if you already have an LLC (Limited Liability Company) or business entity protection! Having an LLC or another business entity doesn’t eliminate your need for liability insurance. An LLC helps protect your personal assets, but liability insurance is still necessary to cover the financial risks of running your business.