General Liability vs Professional Liability Insurance: Which Do You Need?
One covers physical harm from your operations. The other covers financial harm from your professional advice. Most service businesses need both.
Side-by-Side Comparison
General Liability (GL)
- Covers: Bodily injury, property damage, advertising injury
- Cost: $400 - $4,500/yr depending on industry
- Policy type: Occurrence-based (covers incidents during policy period regardless of when claim is filed)
- Common claims: Slip-and-fall, property damage, advertising disputes
- Standard limits: $1M per occurrence / $2M aggregate
Professional Liability (E&O)
- Covers: Professional errors, omissions, negligent advice
- Cost: $400 - $6,000/yr depending on profession
- Policy type: Claims-made (only covers claims filed during active policy period)
- Common claims: Bad advice, missed deadlines, failure to deliver, data errors
- Standard limits: $1M per claim / $1M aggregate
Cost Comparison by Business Type
| Business | GL Cost/yr | E&O Cost/yr |
|---|---|---|
| Consultant | $400 - $900 | $500 - $1,500 |
| Accountant / CPA | $400 - $800 | $800 - $2,500 |
| IT Professional | $500 - $1,100 | $600 - $1,800 |
| Real Estate Agent | $500 - $1,000 | $700 - $2,000 |
| Contractor | $1,200 - $4,500 | Rarely needed |
| Restaurant | $900 - $2,200 | Not needed |
| Landscaper | $400 - $1,500 | Not needed |
| Cleaning Business | $500 - $1,200 | Rarely needed |
| Financial Advisor | $400 - $800 | $1,200 - $4,000 |
| Architect / Engineer | $600 - $1,200 | $1,200 - $4,500 |
Real Scenarios: Which Policy Covers What?
Client slips on your office floor and breaks an arm
GLBodily injury on your premises
Your consulting advice leads to a $200K business loss for a client
E&OFinancial harm from professional advice
You damage a client's property while performing work
GLProperty damage from operations
You miss a project deadline and client loses a contract
E&OFinancial harm from professional failure
Employee of a subcontractor is injured at a job site you manage
NeitherEmployee injuries require workers' comp
Your marketing materials use someone's copyrighted image
GLAdvertising injury coverage
Need E&O coverage?
See our complete guide at professionalliabilityinsurancecost.com for detailed E&O pricing by profession.
Updated 11 April 2026