Commercial General Liability versus Professional Liability insurance: What’s right for you?

As a business owner, you simply can’t predict the future. That’s why it’s so important to protect your business from financial risk – and insurance is designed to help. But how do you know what type of insurance is best suited to your company? Let’s start by reviewing the key differences between Commercial General Liability insurance and Professional Liability insurance. 

What’s Commercial General Liability insurance? 

Commercial General Liability (CGL) insurance helps business owners cover the costs of legal claims arising from their business that cause bodily injury or property damage to a third party. Sometimes referred to as “slip-and-fall insurance,” CGL covers costs such as medical expenses, rehabilitation costs, and your own legal fees in the event of a lawsuit.  

In addition, CGL covers allegations of defamation (such as slander or libel), copyright infringement and false advertising. Typically, CGL insurance includes product liability insurance, which covers third-party bodily injury and property damage claims caused by products you sell, distribute or manufacture (including food). 

Who needs Commercial General Liability insurance? 

Almost every business or professional needs to have Commercial General Liability (CGL) insurance, including: 

• General contractors 

• Bricks-and-mortar or online retailers 

• Restaurant and cafe owners 

• Personal trainers   

Businesses that deal with the public, operate from a physical location, have employees, or engage in contracts are particularly at risk, and can therefore benefit significantly from having CGL insurance. 

What’s Professional Liability insurance? 

Professional Liability insurance covers businesses and professionals who provide services and advice. Sometimes called errors and omissions (E&O) insurance or malpractice insurance, it covers allegations of professional negligence, errors or mistakes, omissions, and customer lawsuits claiming a financial loss caused by your services or advice. 

Who needs Professional Liability insurance? 

Businesses or independent professionals that offer specialized advice or services which could cause a financial loss to their customers should have professional liability insurance, including:  

• Professional service providers: Insurance brokers, real estate agents, lawyers, accountants, consultants and financial advisors 

• Creative service providers: Photographers, graphic designers, copywriters and web designers 

• Technology services providers: Software developers, cybersecurity specialists, IT consultants 

• Construction and design service providers: Engineers, architects and project managers 

• Medical and healthcare service providers: Doctors, nurses and other healthcare providers 

Request a free quote and protect your business today! 

If you’re ready to protect your business from risk, consider CAA Business Membership. In addition to insurance, your Membership gives you access to an à la carte menu of innovative business solutions – including Commercial Roadside, Commercial Pit Crew, Group Benefits and Employee Memberships.   

Request a free quote – and discover how our competitive pricing makes quality coverage affordable for your business. To learn more, visit CAA Business Insurance.