How does "general liability" differ from "professional liability" insurance?

General liability insurance primarily provides coverage for claims related to bodily injury or property damage occurring on the insured's premises or as a result of their business operations. This means that if a customer slips and falls in a store or if a business accidentally damages someone else's property during operations, general liability insurance would respond to those claims, covering legal fees and any payouts due to the incident.

On the other hand, professional liability insurance, often referred to as errors and omissions insurance, is designed to protect professionals—such as doctors, lawyers, and consultants—against claims of negligence or errors in the services they provide. This type of insurance is focused on the services rendered and any alleged failures to perform those services competently.

Thus, the distinction highlighted in the correct response—where general liability is associated with property damage and professional liability with the services provided—is accurately capturing the fundamental differences in coverage focus between the two types of insurance. Understanding these differences is critical for businesses to ensure they have the appropriate insurance coverage for their specific risks.