Professional Liability vs. General Liability
Professional liability vs. general liability: what’s the difference for businesses? Professional liability vs. general liability: what’s the difference for businesses? General liability insurance usually responds to covered third-party bodily injury, property damage, and certain personal or advertising injury claims. Professional liability insurance usually responds when a client alleges that advice, services, an error, omission, negligence, or missed deliverable caused financial loss. In plain language, general liability addresses many physical risks arising from business operations. Professional liability addresses risks arising from the work, advice, or expertise the business provides. Key takeaways Commercial general liability is commonly called CGL or general liability. Professional liability is also commonly called errors and omissions or E&O insurance. CGL and professional liability address different claim triggers. One policy generally does not replace the other. Businesses with physical operations and professional-services exposure may need both. Contracts, regulatory requirements, operations, and policy wording should drive the decision.…
