Florida Insurance Licensing 2025 – 400 Free Practice Questions to Pass the Exam

The distinction between general liability and professional liability insurance largely revolves around the risks they cover. General liability insurance is designed to protect businesses from claims related to bodily injury and property damage that may occur on their premises or as a result of their business operations. This type of insurance is essential for any business as it offers protection against accidents that could lead to legal claims from customers or other third parties.

For instance, if a customer slips and falls in a store, general liability insurance would help cover the medical expenses and legal fees that may arise from such a claim. It specifically addresses the risks associated with physical interactions and the tangible assets of a business, which is why the statement about general liability covering bodily injury and property damage accurately captures its primary function.

In contrast, professional liability insurance—often referred to as errors and omissions insurance—protects professionals against claims of negligence, errors, or omissions in the services they provide. This type of coverage is critical for service-oriented businesses and professionals such as lawyers, doctors, and consultants, as it safeguards them against claims that arise from the advice or services they render, rather than from physical damage or injury.

By accurately identifying that general liability insurance covers bodily injury and property damage, the selected answer highlights a fundamental difference in focus