What is the main distinction between "professional liability" and "general liability" insurance?

The main distinction between professional liability and general liability insurance lies in the nature of the risks they cover. Professional liability insurance is designed to protect professionals from claims that arise due to errors, omissions, or negligence in the provision of their professional services. This includes areas such as consulting, law, healthcare, and accounting, where specialized knowledge or skills are central to the service provided. If a client feels that a service provided was inadequate or caused them harm, they may seek compensation, which professional liability insurance would help cover.

On the other hand, general liability insurance covers a broader range of risks that any business might face. This can include property damage, personal injury, and advertising injury claims that occur as a result of general business operations, regardless of the specific profession of the insured. Therefore, this policy is tailored for general business risks rather than the specific professional activities that professional liability insurance addresses. The correct answer accurately captures this key difference in focus between the two types of insurance.