General Liability vs. Professional Liability: What’s the Difference?

If you own a business in Baltimore County or Harford County, protecting what you’ve built isn’t optional—it’s essential. Yet one of the most common questions business owners ask is:

“Do I need General Liability insurance, Professional Liability insurance, or both?”

At Northern Chesapeake Insurance, we help local businesses every day navigate this exact question. As a 5-star, independent insurance brokerage serving Baltimore and Harford County, we shop multiple top-rated carriers to find the best coverage at the best price—not just a one-size-fits-all policy.

Let’s break it down.

What Is General Liability Insurance?

General Liability Insurance protects your business from physical and tangible risks—the everyday “what if” scenarios that can happen at your location or while you’re working.

What General Liability Typically Covers:

• Bodily injury (slip-and-fall accidents)

• Property damage to others

• Personal and advertising injury (libel, slander, copyright issues)

• Legal defense costs related to covered claims

Example:

A customer slips on a wet floor at your Baltimore storefront and breaks their wrist. General Liability helps cover medical bills, legal fees, and settlements.

Who Needs General Liability?

Almost every business—including:

• Contractors and trades

• Retail stores

• Restaurants

• Manufacturers

• Landlords

• Small offices

If customers, vendors, or the public interact with your business, General Liability is foundational coverage.

What Is Professional Liability Insurance?

Professional Liability Insurance—also called Errors & Omissions (E&O)—covers claims related to professional services, advice, or expertise.

This policy protects you when a client claims:

• Negligence

• Mistakes or errors

• Failure to deliver promised services

• Misrepresentation

What Professional Liability Typically Covers:

• Financial losses caused by errors or omissions

• Legal defense costs

• Settlements and judgments

• Breach of contract (in some policies)

Example:

A consultant in Harford County gives professional advice that leads to a client’s financial loss. Even if you did nothing wrong, defending yourself can be costly—Professional Liability steps in.

Who Needs Professional Liability?

• Consultants

• Accountants & CPAs

• Real estate professionals

• IT & technology firms

• Engineers & architects

• Marketing agencies

• Healthcare providers

If your business sells knowledge, advice, or expertise, Professional Liability is critical.

General Liability vs. Professional Liability: The Key Differences

Feature	General Liability	Professional Liability
Covers physical injuries	✅ Yes	❌ No
Covers property damage	✅ Yes	❌ No
Covers professional mistakes	❌ No	✅ Yes
Covers financial losses from errors	❌ No	✅ Yes
Needed by most businesses	✅	Depends on services

👉 Important: These policies do not overlap. Many businesses in Baltimore and Harford County need both.

Do You Need Both Types of Coverage?

In many cases—yes.

For example:

• A contractor may need General Liability for job-site accidents and Professional Liability for design or consulting errors.

• A marketing agency needs Professional Liability for campaign results and General Liability for client visits to the office.

This is where working with a local insurance broker matters.

Why Choose Northern Chesapeake Insurance?

At Northern Chesapeake Insurance, we’re not tied to one insurance company—we work for you.

What Sets Us Apart:

⭐ 5-Star Local Agency trusted by businesses across Baltimore and Harford County
⭐ Independent Broker with access to multiple A-rated carriers
⭐ Customized Coverage based on your actual risks
⭐ Rate Shopping to find the best value, not just the cheapest policy
⭐ Local Expertise—we understand Maryland regulations and local business needs

Unlike captive agents, we shop the market to match your business with the right carrier, coverage limits, and pricing.

Local Coverage You Can Count On in Baltimore & Harford County

Whether you’re operating in:

• Baltimore City

• Towson

• Bel Air

• Aberdeen

• White Marsh

• Edgewood

• Havre de Grace

…Northern Chesapeake Insurance is your go-to local insurance partner.

We help businesses:

• Avoid coverage gaps

• Meet contract and licensing requirements

• Scale coverage as they grow

• Stay protected when claims happen

Get Expert Guidance—Not Guesswork

Choosing between General Liability and Professional Liability shouldn’t be confusing or risky.

📍 Northern Chesapeake Insurance
📞 Local, responsive, and trusted
⭐ Your Baltimore & Harford County 5-star insurance broker

👉 Contact Northern Chesapeake Insurance today to review your coverage, compare options, and make sure your business is fully protected—with the right policies at the right price.