Question 1

What is the difference between professional liability and general liability?

Accepted Answer

General liability (GL) covers physical risks — a customer injured at your business, property you accidentally damage, or advertising that defames someone. Professional liability (also called Errors & Omissions or E&O) covers advice and service risks — a client who suffers financial harm because your professional work, recommendations, or expertise fell short. GL covers what happens in the physical world. Professional liability covers what happens in the professional world.

Question 2

Does general liability cover professional mistakes?

Accepted Answer

No. This is the most dangerous insurance misconception in professional services. Standard GL policies explicitly exclude 'professional services' claims — meaning if you give bad advice, make a professional error, or fail to deliver a professional service correctly, GL does not cover you. You need professional liability / E&O insurance to cover professional negligence claims. Many professionals carry GL (required by leases and contracts) but wrongly assume it covers their professional work.

Question 3

Who needs professional liability insurance?

Accepted Answer

Any business that provides professional services, advice, expertise, or consulting. This includes: accountants, attorneys, architects, engineers, IT consultants, marketing agencies, financial advisors, doctors, therapists, real estate agents, insurance agents, business coaches, web developers, designers, and any other professional whose work product or advice can cause a client financial harm if it is wrong, late, or insufficient.

Question 4

Can I get professional liability and general liability on one policy?

Accepted Answer

Usually not — they are typically separate policies from the same or different carriers. Some specialty programs (like tech E&O + GL bundles for IT companies) offer combined policies, but most businesses will have a separate GL policy (or BOP) and a separate E&O policy. Some carriers offer package discounts for buying both, but the policies remain legally distinct. ERGO NEXT can quote both with one application.

Question 5

How much more does professional liability cost compared to GL?

Accepted Answer

Professional liability / E&O typically costs more than GL for the same business, because professional claims tend to be larger and more complex. A small GL policy might run $400–$800/year for a consultant. Professional liability for the same consultant might run $800–$2,000/year depending on industry, revenue, and coverage limits. High-risk professions (lawyers, architects, physicians) pay significantly more — $2,000–$15,000+/year. Together, a GL + E&O package for a mid-size professional services firm typically runs $1,500–$5,000/year.

Scenario	General Liability	Professional Liability (E&O)
Client trips and falls in your office	✅ Covered	❌ Not applicable
You accidentally damage client's property	✅ Covered	❌ Not covered
Your advertising defames a competitor	✅ Covered	❌ Not covered
Client claims your advice caused financial loss	❌ Excluded	✅ Covered
You make an error in a deliverable or report	❌ Excluded	✅ Covered
Client claims you missed a deadline causing harm	❌ Excluded	✅ Covered
You release confidential client information	❌ Not covered	✅ Often covered (check policy)
Copyright claim from published content	⚠️ Partially (ad injury)	❌ Usually excluded
Regulatory/professional board investigation	❌ Not covered	✅ Defense costs covered (most policies)

Business Type	GL (annual)	E&O (annual)	Both Together
Freelance consultant	$420–$700	$700–$1,400	$1,000–$2,000
Marketing agency (5 employees)	$800–$1,400	$1,200–$2,500	$1,800–$3,500
IT company / developer	$600–$1,000	$1,000–$3,000	$1,500–$3,800
Architect (solo)	$700–$1,200	$2,500–$6,000	$3,000–$7,000
CPA firm (3 partners)	$900–$1,500	$2,000–$5,000	$2,500–$6,000
Real estate agent	$500–$900	$500–$1,500	$900–$2,200

Professional Liability vs. General Liability: What's the Difference?

Side-by-Side: What Each Policy Covers

Who Needs Professional Liability?

Always Need E&O

Usually Need E&O

Cost Comparison: GL vs. E&O (2026)

Verdict: Service Businesses Need Both

Get GL + Professional Liability Together

Frequently Asked Questions