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
Treatment gone wrong:
You offer eyebrow waxing as part of your esthetician services. After you wax a customer’s eyebrows, their skin becomes severely irritated. The customer requires medical treatment, and has to cancel a modeling job because of the unsightly irritation. The client sues you for emotional distress and negligence. 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
You are the owner of a small salon. After a blizzard, you fail to have the sidewalks cleared before reopening for business. A client slips after exiting the salon, injures her back, and demands that you pay her hospital bills. General liability insurance protects against third-party claims of bodily injury, associated medical costs, and property damage.
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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.
This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.