General Liability vs. Professional Liability: Which Does Your Connecticut Business Need?

When you're running a business in Connecticut, protecting yourself against unexpected risks is just smart business. But figuring out which type of insurance you actually need — general liability or professional liability— can be confusing.

At Insure Connecticut LLC, we help businesses across Connecticut (and beyond) find the right coverage tailored to their needs. In this guide, we’ll break down the key differences and help you make the best choice for your company.

What Is General Liability Insurance?

General liability insurance protects your business against the day-to-day risks that come from interacting with people and property. It covers claims like:

• Bodily injury (e.g., someone trips and falls at your office)

• Property damage (e.g., you accidentally damage a client’s building)

• Legal fees associated with these types of claims

Typical businesses that need general liability insurance: retail shops, restaurants, contractors, landscapers, and fitness centers — essentially, any business that interacts physically with customers or clients.

What Is Professional Liability Insurance?

Professional liability insurance (sometimes called errors and omissions insurance) covers you when your expertise, advice, or professional service leads to financial loss for a client.

It protects against:

• Claims of negligence

• Misrepresentation

• Incomplete or inaccurate work

• Professional mistakes

Typical businesses that need professional liability insurance: Consultants, IT professionals, accountants, lawyers, architects, engineers, healthcare providers, and marketing agencies.

Key Differences Between General and Professional Liability

Feature	General Liability	Professional Liability
Covers	Physical injuries, property damage	Financial losses from mistakes or negligence
Example Claim	A customer slips and falls in your store	The client loses money due to bad advice
Common Industries	Retail, construction, hospitality	Consulting, finance, healthcare

Both types of coverage are important, but they protect against very different risks.

Does Your Connecticut Business Need Both?

In many cases, yes.

If your business both physically interacts with people and offers advice or professional services, you likely need both general and professional liability policies.

For example:

• A construction company may need general liability for on-site accidents and professional liability if it also offers design consultations.

• A tech company may need general liability for property rental agreements and professional liability to cover software errors that cause client losses.

At Insure Connecticut LLC, we frequently help Connecticut businesses customize packages that include both types, so you’re covered from every angle.

Connecticut Business Insurance Requirements

Connecticut does not mandate general or professional liability insurance by law. However:

• Many commercial leases, client contracts, and professional licensing agreements require you to carry insurance.

• Without coverage, a single lawsuit — even a small one — could be devastating.

In Connecticut’s service-driven economy, more businesses are realizing it’s safer (and smarter) to have both types of protection.

How to Choose the Right Policy for Your Business

Ask yourself:

• What services or products do we offer?

• Do clients or landlords require proof of insurance?

• How much risk is involved in our daily operations?

• Are there industry regulations we need to follow?

When in doubt, it’s best to talk with a local expert who knows the Connecticut insurance landscape, like the team at Insure Connecticut LLC.

Get Expert Help Protecting Your Connecticut Business

Choosing the right insurance shouldn't be stressful. At Insure Connecticut LLC, we're an independent insurance broker licensed in multiple states, and we specialize in helping Connecticut businesses find affordable, customized protection that fits their needs.

Not sure whether you need general liability, professional liability, or both?

➡️ Contact us today for a free quote at (860) 970-0977 or info@insureinct.com

Frequently Asked Questions

Q: Can a business have both general and professional liability insurance?

A: Yes! Many businesses carry both policies to fully protect against both physical accidents and professional errors.

Q: Is professional liability required in Connecticut?

A: It’s not legally required for all industries, but many professional services (like real estate agents, healthcare providers, and consultants) are strongly encouraged — and often contractually obligated—to carry it.