General Liability
General liability commonly addresses certain third-party bodily injury, property damage, and advertising-related claims connected to business operations, subject to policy terms and exclusions.
Professional Liability
Professional liability—often called errors and omissions for some professions—can address certain claims alleging financial harm caused by professional services, mistakes, failures, or advice.
A Simple Example
If a customer slips at your office and is injured, that is the type of exposure commonly associated with general liability. If a client claims your professional advice or service caused them a financial loss, that may be the type of exposure professional liability is intended to address.
Why Some Businesses Need Both
A consultant can still have premises liability. A contractor can still provide advice. A technology company may have physical and service-related exposures. One policy should not automatically be assumed to replace the other.
Claims-Made vs. Occurrence
Professional liability policies are often written on a claims-made basis, which means policy dates, prior acts, and continuous coverage can be important. General liability is commonly written on an occurrence basis, although actual terms vary.
Questions to Ask
- What kinds of third-party claims are covered by each policy?
- Does the professional policy use a claims-made form?
- What retroactive or prior-acts date applies?
- Do client contracts require specific limits?
- Are defense costs inside or outside the policy limit?