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
Third-party property damage:
You are market research consultant delivering a presentation at a client’s site. During the presentation, you knock an expensive projector off the conference table, breaking it. The client files a claim to recover the cost of the projector. General liability insurance protects against third-party property damage, and would cover the cost to replace the item.
PL CLAIM EXAMPLE
You are a media consultant working on an ad campaign for a new product, and you place ads in several print trade publications. The largest of the publications placed the ad on a page directly opposite a competitor’s ad for a similar product. The client sues you for 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.
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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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