Do I Need Professional Liability Insurance Coverage or General Liability Insurance Coverage?

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In the insurance world, it is not uncommon to see people wondering whether they would benefit more from a professional liability insurance policy or from a general liability insurance policy. Because of the similar nature of each policy, it is not surprising either.

Quite simply, a professional liability insurance policy covers professionals. As you may already know, this policy protects professionals¬†from financial loss associated with claims of error or omission. In other words, in the event of a professional negligence or malpractice claim being filed against them, the insured person won’t have to worry about hiring a lawyer. Financial help will be provided by their insurance company.

To know whether you would benefit from this coverage, you need to ask yourself whether you work in a field in which the threat of being sued exists. Think: medical professionals, lawyers, accountants and teachers. Those are among the most sued people in Canada, but they are certainly not the only ones. If you answered yes to the previous question, chances are that you would benefit from requesting a free Canadian professional liability insurance quote from EasyCover.

With that being said, how do you know whether you would benefit more from purchasing a general liability insurance policy?

Unlike professional liability insurance coverage, general liability insurance coverage protects businesses. Those businesses can be one-man businesses or huge corporations with hundreds of employees. This is the first thing that sets those two policies apart, with the second being what exactly general liability insurance coverage covers… namely lawsuits related to personal injuries and property damage.

Categories:

Professional Liability Insurance/PLI

(Errors and Omissions Insurance)

  • Flawed professional advice and services that may have resulted in financial loss to the customer or client.
  • Protects professional individuals or companies from responsibility of the full cost of defending against a negligence claim and damages awarded in such a civil lawsuit.
    • Professional liability insurance covers the costs of judgments, settlements and legal defense.
    • Damages paid under a professional liability policy are typically financial rather than physical.