Based on Hiscox claim data from 1/1/2016-1/30/2019
GENERAL LIABILITY (GL)
Protects your business from a third party’s claims of bodily injury, property damage, and personal injury like slander and libel.
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.
GL CLAIM EXAMPLE
A client is leaving the offices of your small law firm on a winter day. The client slips and falls on the sidewalk outside the office. Your law firm is found liable for her injuries because you failed to adequately clear the sidewalks. General liability insurance protects against third-party claims of bodily injury, associated medical costs, and potential legal action.
PL CLAIM EXAMPLE
You are the owner of a document preparation company. One
of your employees is assisting the human resources department of a large company in transitioning their paper files to an electronic system. The employee accidentally shreds numerous documents before they are scanned correctly and the company is later sued for failing to maintain the proper documentation. The client company makes a claim against your document preparation firm. 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.
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