What Is Professional Liability Insurance Vs. General Liability?

When you’re in a new area or industry, it’s easy to be intimidated and maybe even feel like you don’t know your insurance needs. That’s okay, there is information available, and it can help! In this article, we’ll discuss professional and general liability insurance and why it’s important for professionals.

Here’s what you need to know about professional liability insurance vs. general liability insurance.

The Distinctions Between Professional and General Liability Insurance

Professional liability insurance is for professionals, such as lawyers and doctors. General liability insurance is for everyone. Professional liability insurance covers more types of claims than general liability insurance, like malpractice claims or property damage caused by a professional’s negligence.

As you can see, it’s important to keep your needs in mind when choosing the right type of coverage for your business needs!

Professional Liability Coverage in Florida

Professional liability insurance covers you if you are sued for malpractice, negligence, breach of contract, and other legal claims.

Professional liability insurance is the kind of coverage that covers the cost of legal defense, damages to your reputation and business, and damages to your clients.

Professional liability insurance protects you from being sued by a client or former client who claims they’ve been injured due to something done on your behalf. For example, if you’re an accountant who advises someone on how to invest their money so they can save more than 50% in taxes each year (a great way to increase their net worth), then there’s a chance that this person might be able to sue you if things go wrong and have them pay out hundreds or thousands of dollars for their lawsuit.

Professional Liability Insurance Can Be Required by Law

Professional liability insurance is an essential component of your business. Suppose you are a doctor, lawyer, or another professional who practices in a state that requires it. In that case, it is important to ensure that your professional liability coverage meets the requirements set by that state.

While some states do not require professional liability insurance and instead rely on general personal injury protection (PIP) policies to provide coverage for claims against their citizens’ doctors, lawyers, and other professionals, mandate that all medical practitioners carry some kind of medical malpractice policies as well.

Most States DO NOT Require General Liability Coverage

You will generally find that most states require professional liability insurance. This is true even in cases where you are only providing a service to your clients and not practicing law. Some states do not require general liability coverage at all.

If you are unsure if your state requires professional or general liability coverage for attorneys (or any other licensed professional professionals), contact the Department of Insurance in your state’s capital city (or whatever it may be called).

You Don’t Need to Buy Both Kinds of Insurance

You don’t need to buy both kinds of insurance. You can buy professional and general liability insurance separately or combine them into one policy. You may also choose to purchase professional liability coverage at the same time as your general liability coverage, but this is not required by law in most states.

Liability Insurance Protects You and Your Property 

What is the purpose of liability insurance? You might think that liability insurance protects people from being sued, but it also covers losses that result from injuries sustained by someone else. 

Liability insurance protects you from being sued for injuries, property damage, and bodily injury. If someone gets hurt on your property and sues you, liability will cover the cost of their medical bills and other damages. You can also use liability coverage to cover any legal costs associated with defending yourself against a lawsuit.

For example, if a customer trips on the stairs at your restaurant and knocks herself out, her family could sue you for medical costs and lost wages if they file a lawsuit against you. This type of coverage would protect both sides in this case because it will cover any financial loss caused by an accident (e.g., medical expenses).

Things That Aren’t Covered by Liability Insurance in Florida

While liability insurance will cover you in the event of theft, vandalism, and assault, it doesn’t cover intentional harm. 

This means that if someone intentionally injures or kills someone else while they’re on your property, liability coverage won’t help protect you from being held responsible for those injuries, and might even cause more damage to your business’s reputation than if there were no insurance at all!

If you’re self-employed, ask your business insurance company for additional information about personal risks. Ask them if they have a policy that covers you if you get hurt on the job. They might also have a policy covering any injuries sustained while traveling for work. For example, if your business sends employees out of town every week or two weeks.

If this is the case and there’s an accident while traveling (or even just being in a location where it’s not safe), make sure that your employer has purchased liability coverage too!

Carry A Health Insurance Policy

It’s also a good idea to carry a health insurance policy. Health insurance can cover you if you get sick if you have an accident or are injured on the job.

You may wonder what happens if your car is hit by another uninsured driver and drives off without paying for damages. If this happens, then the other driver will probably not have any liability coverage in place because they weren’t required by law to carry it when they bought their vehicle (or set up auto insurance). 

However, most states require drivers who own cars older than 10 years old with more than one person in them (such as taxis) to carry some form of bodily injury protection even if they aren’t required by law; so even though Florida doesn’t require this type of insurance, it can help keep you protected in cases like this.

Liability Insurance Is Expensive but Necessary For Many Businesses.

Liability insurance is expensive, but it’s necessary for many businesses. Many people think that liability insurance is an unnecessary expense that only large companies need to worry about, but the truth is that anyone who owns a business should have some sort of liability insurance.

Buying liability coverage can indeed be expensive, but you won’t find any financial success without taking risks! If you’re thinking about starting your own business, then consider buying liability coverage today so that if something goes wrong at work with customers or employees (or even yourself), you’ll be protected from lawsuits and paying out money unnecessarily.

Average Cost of Professional Liability Insurance in Florida

Small businesses are typically charged $65 per month ($780 per year) for professional liability insurance, regardless of policy limits. Compared to the average cost of business insurance, the median cost provides a more accurate estimate of what your business will likely pay because it excludes outlier premiums.

Insurers charge relatively low rates to small businesses (51 percent), with 18 percent paying less than $500 per year. According to these figures, thousands of policies purchased by small business owners have been analyzed

It’s important to note that this figure doesn’t include any potential legal defense costs. Being proactive about your business insurance coverage can help you avoid having to pay for these defense costs out of pocket.

The Average Cost of General Liability Insurance in Florida

If you own a business, it’s essential that you understand the costs of general liability insurance. The last thing you want is for an accident to occur and for your company to be held liable for damages. The cost of general liability insurance can be high, so shopping around for the best price is essential.

The average cost of general liability insurance in Florida is about $1,200 per year for an individual policy and $2,400 per year for a business policy. This amount is based on the number of employees and the size of your business. If you have fewer employees or your company has less than $50 million in revenue, then your costs will be lower than if you have more employees or more revenue.

The Bottom Line

So, what exactly is professional liability insurance, anyway? Unlike general liability insurance, which protects the public when an accident occurs that might damage someone’s property or cause harm, professional liability insurance covers a variety of claims beyond simple property damage claims. 

Professional liability insurance can protect your business from big risks that can rack up big expenses, such as medical malpractice claims and lawsuits filed by clients or competitors. It also covers fewer major risks, like employment discrimination and defamation claims. 

Every business is different. If you need liability insurance, it’s a good idea to work with a trusted insurance professional who understands this and can provide the customized coverage that your business needs. 

For any of your professional liability insurance questions, call or visit us today.