General Liability vs. Professional Liability (E&O): What’s the Difference?
One covers physical harm and property damage; the other covers financial losses from your work or advice. Many businesses need both — here’s why.
General liability, in plain English
General liability (GL) covers third-party bodily injury and property damage — the “someone slipped in my shop” or “I knocked over a client’s vase” claims. It’s the foundation policy most businesses start with and the one contracts and venues most often require.
Professional liability (E&O), in plain English
Professional liability — also called Errors & Omissions (E&O) — covers financial losses caused by your professional services, advice, or work: a mistake, a missed deadline, or alleged negligence that costs a client money. There’s no physical injury, just a financial harm tied to how you did your job.
A quick example
A consultant gives advice that leads to a client losing money: that’s an E&O claim, not GL. The same consultant trips a visitor in their office: that’s GL, not E&O. Different policies, different triggers.
Who needs which
Almost every business benefits from GL. E&O matters most for businesses that give advice or deliver a professional service — consultants, agencies, IT, designers, accountants, real estate, and the like. Service businesses often carry both, sometimes packaged together.
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FAQs
Can I get both in one policy?
Often yes — many carriers can package general liability and professional liability together, and a BOP can fold in property too. We’ll structure it to match your work.
Does general liability cover my mistakes?
No. GL covers bodily injury and property damage to others, not financial losses from errors in your professional work — that’s what E&O is for.
Which one do contracts usually require?
Most contracts require general liability at specific limits; some professional or client contracts also require professional liability. We can match the exact wording.
This guide is general information, not legal advice or a coverage promise. Coverage varies by policy, carrier, and state — a licensed agent confirms what applies to you.