Raffi Kodikian Explains the Difference Between General Liability and Professional Liability

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Coverage for abstract damage and professional errors is a must, says Kodikian.

SAN FRANCISCO, CALIFORNIA, June 30, 2021 — Business professionals may need law firms to help them navigate the legal world if a client is unhappy with their practice. Whether they made a real or perceived mistake, Raffi Kodikian says they could face litigation threats. Professionals need to know the difference between general liabilities and professional liability.

Kodikian is Vice President and Lawyers Professional Liability Practice Leader at Founders Professional. Before that, he was Vice President at Cooper & McCloskey where he worked for almost 14 years, learning the ropes of insurance and professional liability. His recent announcement explained the difference between general liability and professional liability.

According to Kodikian, the type of liability coverage changes based on the role of the professional or business owner. While a contractor may be held responsible for their building, Kodkian says consultants could be liable for the financial losses of a business if they gave poor business advice.

A big misconception is that a professional’s general liability covers their professional exposure, but that’s not at all the case says Kodikian. While general liability covers any physical risks that occur—like workplace accidents or property damage—professional liability covers errors and other abstract risks.

“This isn’t an area where you want to go without a safety net,” says Kodikian. “Clients can come at you over the smallest thing that they’ve perceived as a catalyst for their business’s disaster. You have to have someone on your side to protect you as a professional. We all make mistakes and professional liability insurance protects you—even when something is absolutely a fault on your part.”

Kodikian says all professionals should consider professional liability insurance along with general liability insurance coverage. Lawyers, accountants, tax preparers, home inspectors, IT professionals, consultants, web developers and many other kinds of professionals should get this coverage, Kodikian says.

“What if you create a website for a client, but a glitch kills sales for a few days until the mistake is caught, costing thousands?” asks Kodikian. “Or, what if you give bad advice on investing or tax filing? Or, you tell a couple they should buy a home—only to later find out it was full of termites your inspector didn’t catch? Who pays for these mistakes if the client decides to take you to court- even if it wasn’t your mistake?” That is what professional liability insurance is for, explains Kodikian. It covers the more abstract forms of harm that can still be quantified for a legal suit.Kodikian recommends working with Founders Professionals for business owners who need professional liability insurance. They help businesses of all sizes, spanning a wide variety of industries. To find out pricing about individual coverage, lawyers can get a professional liability insurance quote by emailing Raffi Kodikian at [email protected].