3 minute readBusiness
General liability covers bodily injury and property damage — a customer slips, your crew damages a wall. Professional liability (errors and omissions) covers financial harm from your advice or work product — a missed deadline, a flawed design, a bad recommendation. Most service businesses need both.
What you need to know
Different kinds of harm
GL responds to physical injury and damage; E&O responds to economic loss and negligence claims.
Claims-made vs. occurrence
E&O is usually claims-made, which makes continuous coverage and retroactive dates important.
Which one your contracts require
Client agreements frequently require both at specified limits.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.