Coverage Comparison
General Liability vs. Professional Liability
Two essential coverages that protect against very different risks. Here's how to know which one (or both) your business needs.
General Liability
Protects against claims of bodily injury, property damage, and personal injury (like defamation) that occur during your business operations.
Protects Against
- Bodily injury to third parties
- Property damage you cause
- Personal and advertising injury
- Medical payments
- Legal defense costs
Professional Liability (E&O)
Protects against claims arising from professional mistakes, negligence, or failure to deliver services as promised.
Protects Against
- Professional negligence claims
- Errors in your work product
- Missed deadlines causing client loss
- Breach of contract allegations
- Failure to deliver promised results
Real-World Examples
General Liability Claims
- A client slips and falls in your office
- Your employee damages a client's property
- Someone claims your advertising slandered them
- A product you sell injures a customer
Professional Liability (E&O) Claims
- An accountant makes a tax filing error
- A consultant's advice leads to client losses
- A software bug causes client downtime
- Missed project deadline costs client a contract
Key Differences at a Glance
When You Need Both
- You provide professional services AND have client-facing premises
- Your work involves both physical tasks and professional advice
- Contracts require both coverages (common in construction, consulting)
- You have employees who interact with clients on-site
Frequently Asked Questions
Can I just get one policy that covers both?
Some insurers offer a Business Owner's Policy (BOP) that bundles GL with property coverage, but Professional Liability is almost always a separate policy. The risks are fundamentally different, so they're underwritten separately.
Which is more expensive?
It depends on your industry and risk profile. Professional Liability tends to be more expensive for high-risk professions (lawyers, architects, medical). General Liability is often higher for businesses with significant foot traffic or physical operations.
Do I need Professional Liability if I'm incorporated?
Yes. While incorporation protects personal assets, it doesn't protect the business itself from professional negligence claims. Professional Liability covers defense costs and settlements that could otherwise bankrupt the company.
Not sure which coverage you need?
Talk to a Summit advisor. We'll review your business and recommend the right combination of coverages.
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