General liability and professional liability address different risks. Many businesses need one or both. Knowing the difference helps you avoid gaps and meet client or contract requirements.
General liability and professional liability address different risks. Many businesses need one or both. Knowing the difference helps you avoid gaps and meet client or contract requirements.
General liability typically covers third-party bodily injury (e.g. a customer slips at your location), property damage (e.g. you damage a client’s property), and advertising injury (e.g. defamation or copyright claims). It does not cover errors in professional advice or failure to perform professional services.
Professional liability (errors & omissions, E&O) covers claims that your advice, design, or services caused financial loss or harm. It responds to allegations of negligence, mistakes, or failure to deliver as promised. Common for consultants, designers, and service professionals.
Most businesses that have a premises or do physical work benefit from general liability. Those that give advice, designs, or professional services often need professional liability. Many companies need both.
A single lawsuit can be costly. General liability and professional liability protect against different types of claims, so having the right combination reduces the chance of an uncovered loss.
Not usually. General liability covers physical injury and property damage that professional liability does not. If you have an office or do work on client sites, you typically need both.
Some do. Design-build firms, engineers, and contractors who provide design or professional recommendations may need professional liability in addition to general liability and other coverages.
Need help finding the right commercial insurance coverage for your business? Request a quote and speak with True Shield Risk about your options.