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 couple who is selling their home meets at your office to sign the contract. As they are leaving the office, the wife slips and falls on the icy steps outside, injuring herself. General liability insurance protects against third-party claims of bodily injury, associated medical costs, and property damage.
PL CLAIM EXAMPLE
You listed a home in a high-demand neighbourhood, and the house went under agreement almost immediately. After the closing, the seller heard of another home in the same area that sold for a higher price and sues you, charging that their home was under-priced. 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.
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.