Difference between general and professional liability insurance
Difference between general and professional liability insurance
Understanding the Difference between General and Professional Liability Insurance in South Africa
As a business owner in South Africa, protecting your business from potential risks and liabilities is essential. Two types of liability insurance that are often confused with each other are general liability insurance and professional liability insurance. While both types of insurance provide financial protection against claims made by third parties, they differ in terms of the types of risks they cover. In this blog post, we’ll explore the difference between general and professional liability insurance in South Africa.
General Liability Insurance
General liability insurance in South Africa provides financial protection against claims made by third parties for damages or injuries caused by your business operations. This type of insurance covers:
-
Slip and fall accidents: General liability insurance covers damages or injuries caused by slip and fall accidents on your business premises.
-
Property damage: General liability insurance covers damages or losses caused to third-party property, such as buildings, equipment, or vehicles.
-
Advertising injuries: General liability insurance covers damages or injuries caused by advertising, such as libel or slander.
Professional Liability Insurance
Professional liability insurance in South Africa provides financial protection against claims made by third parties for damages or injuries caused by professional negligence or errors. This type of insurance covers:
-
Professional negligence: Professional liability insurance covers damages or losses caused by professional negligence, such as errors or omissions made by professionals, such as doctors, lawyers, or accountants.
-
Errors and omissions: Professional liability insurance covers damages or losses caused by errors or omissions made by professionals.
-
Breach of duty: Professional liability insurance covers damages or losses caused by a breach of duty, such as a breach of fiduciary duty.
Key Differences
The key differences between general and professional liability insurance in South Africa are:
-
Type of risk: General liability insurance covers general business risks, while professional liability insurance covers professional risks.
-
Type of damages: General liability insurance covers physical damages or injuries, while professional liability insurance covers financial damages or losses.
-
Professionals covered: Professional liability insurance is designed for professionals, such as doctors, lawyers, or accountants, while general liability insurance is designed for businesses in general.
Conclusion
In conclusion, while both general and professional liability insurance provide financial protection against claims made by third parties, they differ in terms of the types of risks they cover. As a business owner in South Africa, it’s essential to understand the difference between these two types of insurance to ensure that your business is adequately protected.
Related Links
What is the highest disability pay?
What is the highest amount of disability allowance?
What gets 100% disability?
What conditions qualify for disability in South Africa?
What illnesses are classed as a disability?
What are the most approved disabilities?
Which conditions do not count as a disability?
What are 14 types of disability?
What are the 4 main type of permanent disability?