Based on Hiscox claim data from 1/1/2016-1/30/2019
PROFESSIONAL LIABILITY (PL)
Also known as errors and omissions, or E&O, coverage, this protects you from claims of negligence during the course of conducting business. You’re protected even if you haven’t made a mistake.
GENERAL LIABILITY (GL)
Protects your business from a third party’s claims of bodily injury, property damage, and personal injury like slander and libel.
PL CLAIM EXAMPLE
Negligence: You advise a client to purchase a particular style of ramp for disabled individuals that you believe meets ADA standards. Turns out you were wrong, as the ramp has been outdated for some time. Professional liability insurance protects against claims of negligence and will appoint an attorney to defend you, if needed, even if you haven’t made a mistake.
GL CLAIM EXAMPLE
Property damage: You are a building inspector who has been hired to inspect a renovation project in an office building. Part of the building is occupied. While passing through the occupied section of the building, you inadvertently knock an expensive vase off a table in a lobby area. General liability insurance protects against third-party property damage and would cover the cost to replace the item.
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Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services.
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