General liability insurance covers a business's legal responsibility for bodily injury or property damage to others arising out of non-professional negligent acts, while professional liability covers claims about the advice or specialist work a business sells. The Insurance Information Institute says professional liability may be excluded from a standard general liability policy, and that a business owners policy does not cover it either. The two are separate covers with separate price effects, and a business that sells expertise usually has to ask about professional liability on its own.

What is the difference between general liability and professional liability?

The difference is the kind of negligence being covered. General liability responds to non-professional negligence, the ordinary risks of operating a business, such as a visitor hurt on the premises or a client's property damaged during a job. Professional liability responds to claims about the quality of the advice, design, analysis or specialist service a business provides for a fee.

The Institute draws the first half of that line. It says bodily injury and property damage cover protects against liability for harm to others arising out of non-professional negligent acts. It also names professional liability among the risks that may be excluded from a standard general liability policy.

For price, the consequence is that adding professional liability is an extra cover with its own cost, not a feature of the base premium. This page does not state what that cost is.

The terms, in alphabetical order

Business interruption insurance

Business interruption insurance covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business, according to the Institute. It is one of the three parts of a business owners policy. It affects price because it is an additional cover bundled in, and it is different from general liability, which responds to claims by others.

Business owners policy

A business owners policy, usually called a BOP, bundles property insurance, business interruption insurance and liability protection. The Institute says it is aimed at small and mid-sized businesses that generally face the same kind and degree of risk. Its limits are stated plainly: "BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance." This page does not state that a bundle costs less than separate covers.

Coverage amount

Coverage amount is the amount of cover requested. Hiscox lists it, alongside business size, industry and location, as one of the things that moves its general liability price. A larger amount generally means a higher premium, though this page states no figures.

Deductible

A deductible is the amount the business pays before the policy responds to a covered claim. A higher deductible generally lowers a premium, so a cheap quote may simply carry a larger one. This page does not state typical deductibles.

Employment practices liability

Employment practices liability is excluded from a standard general liability policy but can be bought as a separate policy, according to the Institute. It adds cost for a business with staff. This page does not describe what a particular employment practices policy covers.

Endorsement

An endorsement is an addition to a policy that adds cover or changes its terms. The Institute says pollution liability is excluded from general liability and can be purchased as an endorsement. An endorsement affects price because it adds cover the base policy lacks.

Exclusion

An exclusion is a risk a policy does not cover. For general liability, the Institute names workers' compensation and employment practices liability, pollution liability, liquor liability, professional liability and other risks. A policy with more exclusions may carry a lower premium, but the excluded risks remain the business's own.

General liability insurance

General liability protects against liability for bodily injury or property damage to others arising out of non-professional negligent acts. It also covers personal and advertising injury and medical payments, each defined below. Hiscox states that it starts at $30 a month, and ERGO NEXT, formerly NEXT Insurance, says its starts at $19 a month for some businesses, both as of October 13, 2026 and both floors, not quotes.

Limit

A limit is the most a policy will pay for a covered claim. A lower limit generally lowers a premium, so two quotes are only comparable when they carry the same limit. This page does not state typical limits.

Liquor liability

Liquor liability covers claims related to the sale or service of alcohol. The Institute says it may be excluded from general liability, and that without the extra cover a standard policy does not protect a business against liquor-related claims. It affects price for any business that serves alcohol.

Medical payments cover

Medical payments cover is part of general liability. The Institute says it can be triggered without legal action, so a small injury can be paid without a lawsuit.

Personal and advertising injury

Personal and advertising injury covers harms that are not physical. The Institute lists libel, slander, false arrest, infringing on another's copyright and malicious prosecution.

Pollution liability

Pollution liability is excluded from a standard general liability policy but can be added as an endorsement, according to the Institute. It adds cost for trades that handle chemicals or treatments.

Premium

A premium is the price paid for a policy. Premiums depend on trade, payroll, revenue and location. Every published figure belongs to the company that issued it and describes its own customers or products, not the market. As of October 13, 2026, The Hartford publishes an average of about $810 a year, or about $67 a month, and Insureon reports an average of $45 a month across roughly 100,000 of its own customers, but neither is a market rate.

Professional liability

Professional liability covers claims arising from the advice, design, analysis or specialist service a business provides. It is not the same as general liability. The Institute says it may be excluded from general liability and that a business owners policy does not cover it, so it is usually bought as its own cover.

Property insurance

Property insurance covers buildings and contents owned by the company, according to the Institute. It is one of the three parts of a business owners policy and protects the business's own assets, where liability cover protects against claims by others.

Workers' compensation

Workers' compensation is excluded from general liability but can be purchased as a separate policy, according to the Institute. The U.S. Small Business Administration states that the federal government requires every business with employees to carry workers' compensation, unemployment and disability insurance, and that some states require additional insurance.

Where can the rules for a particular state be checked?

Requirements are set by state as well as federal law, and this page does not state a requirement for any particular state. The place to confirm one is that state's own insurance department. The National Association of Insurance Commissioners publishes a small business insurance shopping tool, the Washington State Office of the Insurance Commissioner has a guide to how business insurance works, and the Texas Department of Insurance has a page on general liability insurance.

A business in another state should look for its own department's equivalent.

Sources

This is general information rather than legal, tax or accounting advice, and requirements vary and change.