General Liability vs. Professional Liability (2026)

General Liability (GL) covers physical claims — bodily injury to third parties, damage to someone's property, and personal injury claims like libel or slander. Professional Liability (also called E&O or Errors and Omissions) covers financial harm claims — a client who says your professional advice, service, or work product cost them money. If you drop a client's laptop (physical damage), that's GL. If you give bad advice that costs them a deal, that's E&O.

Many professionals need both. A consultant who meets with clients at a leased office needs GL (for slip-and-fall at the office, damage to the building) AND professional liability (for claims your advice harmed a client financially). A photographer needs GL (camera equipment damaging someone's property) AND E&O (delivering the wrong photos, missing the shot at a wedding). Review your actual risks — most service businesses benefit from having both.

It depends on your profession and risk level. For low-risk service businesses, GL and professional liability are often similarly priced at $400-$800/year each. High-risk professional liability — for architects, engineers, financial advisors, or medical professionals — can cost $2,000-$20,000+/year. GL for physical trades tends to scale with employee count and payroll.

Professional liability is most critical for: accountants and financial advisors (financial advice mistakes), architects and engineers (design errors), IT professionals and software developers (system failures, data breaches), lawyers (malpractice), medical professionals (medical malpractice), consultants (management advice), and marketing agencies (campaign failures). If your income comes from advice, expertise, or deliverables — you likely need E&O.

Yes. ERGO NEXT (powered by NEXT Insurance) offers professional liability coverage for many small business types alongside their GL policies. This allows you to get both GL and professional liability from the same online carrier in a single session. For higher-risk professional services, specialty carriers may offer broader coverage.