Can I have both general and professional liability insurance?

Complete Guide to Combining General and Professional Liability Insurance

Why This Question Matters for Colorado and Utah Residents

For businesses in Colorado and Utah, understanding the roles of general and professional liability insurance is critical to managing risk effectively. These states have distinct industry landscapes—from agriculture in Weld County to tech firms in Denver and Salt Lake City—that shape the unique risks businesses face.

• Broad risk coverage: General liability insurance protects your business from common physical risks like customer injuries on your premises or property damage claims, important in areas with growing retail and service sectors like Fort Collins and Park City.
• Professional exposure: Professional liability (also known as Errors & Omissions) covers claims related to mistakes or negligence in your professional services, vital for consultants, designers, and healthcare providers prevalent in Colorado and Utah's urban centers.
• Regulatory requirements: Certain contracts or licensing boards in both states may require proof of appropriate liability coverage, including both types depending on your industry.

What Most People Get Wrong

A common misconception is that general liability alone is sufficient. Many Colorado and Utah business owners underestimate the complexity of professional risks, assuming physical injury coverage protects them from all liability claims.

Another mistake is failing to understand policy exclusions. Professional liability policies usually exclude bodily injury and property damage, which general liability covers, making both policies necessary for full protection.

The Complete Picture

Yes, you can and often should have both general liability and professional liability insurance. Together, these policies provide a robust risk management framework. General liability takes care of accidents and injuries that happen on your business premises or because of your business operations, including third-party property damage.

Professional liability insurance specifically protects against claims arising from your professional services—for example, errors, omissions, or negligence leading to client financial loss. This distinction is crucial in Colorado and Utah, where sectors like construction, tech, legal, and health services face diverse liability threats.

In Northern Colorado, the average general liability premium ranges widely depending on industry risk—from as low as $52/month for software professionals to several thousand dollars for contractors. Professional liability costs similarly vary by profession and claim history.

Having both policies reduces the risk of gaps that could leave you exposed. For example, a construction firm in Denver might face a slip-and-fall injury claim covered by general liability and a design error claim requiring professional liability. Without both, the business risks significant financial loss.

Choosing the right insurance combination means carefully reviewing your business activities, contractual obligations, and regional risk factors, which our FoCoIns experts are ready to help you evaluate.

Making the Right Decision for Colorado and Utah Residents

Question 1: What liabilities are most common in your Colorado or Utah industry?

Consider the typical risks your business faces. Retail and service businesses often encounter slip-and-fall or property damage claims, while professionals like architects and consultants face errors or omissions allegations.

• Identify physical risk exposures — employee/customer injuries, property damage
• Recognize professional service risks — advice, design errors, misrepresentations

Question 2: What coverage do your contracts and licenses require?

Review your contracts carefully to understand any insurance mandates. Many Colorado public contracts and Utah professional licensing boards specify minimum general and professional liability limits with additional insured endorsements.

Ensure your policies meet these criteria to avoid breaches or penalties.

Question 3: How might potential claims financially impact your business in Colorado or Utah?

Assess your business assets, revenue, and future growth plans. Consider that even a single major claim—such as a $75,000 slip-and-fall injury or a $100,000 professional negligence suit—can jeopardize your financial stability.

Work with FoCoIns to analyze your risks and tailor coverage layers to protect assets effectively, including umbrella policies if needed.