Two of the most common commercial insurance policies — and two of the most confused. Here's the difference and when you need both.
General liability (GL) covers third-party bodily injury and property damage. If a client trips in your office and breaks their wrist, GL pays their medical bills and your legal defense. If your employee damages a client's property on a job site, GL covers the repair.
GL also covers advertising injury — claims that your marketing infringed on someone's copyright or slandered a competitor.
Professional liability, also called Errors & Omissions (E&O), covers financial loss caused by your professional services. If you give bad advice, miss a deadline, or make an error that costs your client money, E&O pays the claim and your defense costs.
Key difference: GL covers physical harm. E&O covers financial harm from professional mistakes.
Most service businesses need both. A consulting firm needs E&O for bad advice and GL for a client who slips in their conference room. An architect needs E&O for design errors and GL for job site injuries. A tech company needs E&O for software failures and GL for their office space.
GL: $400–$1,200/year for low-risk professional services. E&O: $500–$3,000/year depending on revenue and industry. Bundling both often saves 10–15% versus separate policies.
Not sure which you need? Request a free quote and we'll recommend the right combination for your business.