General liability vs. professional liability

Published 2026-06-12 · by Brokly

The short answer: General liability covers people and property you harm; professional liability covers advice, designs, or services that fail and cost your client money.

The harm it answers

General liability: Physical: someone hurt, something damaged

Professional liability (E&O): Financial: work or advice that goes wrong with nothing broken

Typical claim

General liability: A customer slips in your shop; your work damages a neighboring unit

Professional liability (E&O): A design fails inspection; a spec was wrong; advice cost the client a job

Who needs it most

General liability: Nearly every business with premises, customers, or job sites

Professional liability (E&O): Trades that certify, design, inspect, or advise

In contracts

General liability: Asked for almost universally

Professional liability (E&O): Asked for by name — often as "errors and omissions" or "E&O"

The line between them is the kind of harm. If a person is injured or property is damaged, that's general liability territory. If the harm is purely financial — a mistake in the work itself, with nothing physically broken — general liability typically won't pay, and that's exactly the gap professional liability exists to fill.

Many trades quietly carry both exposures: an electrician's faulty wiring that starts a fire is a general liability claim, but a load calculation that fails inspection and forces a redesign is a professional one. If your work involves judgment a client relies on, a professional liability policy is usually paying to close a gap you actually have.

See how this plays out for your trade: electricians · physician offices

Related terms

Descriptions reflect how these coverages typically work — exact terms live in the policy. Not legal or compliance advice.

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