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
You recommend that a client restructure his business, including selling off marginal business units. The strategy backfires as the sold off units begin to prosper and the core business declines. The client sues you for giving him bad advice. Professional liability insurance protects against claims of negligence and will appoint an attorney to defend you, even if you haven’t made a mistake.
GL CLAIM EXAMPLE
A prospective client came to your office to discuss an upcoming project. As the client is leaving, he leans on a loose stair railing that gives way. He loses his footing and falls down the stairs, sustaining injuries that require hospitalization. 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.
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