General liability vs. professional liability: what is the difference?
Published May 22, 2026
These two coverages sound similar but protect against very different claims. Many businesses need both.
General liability handles physical risks: a customer slips in your shop, or you damage a client's property on a job site.
Professional liability, also called errors and omissions (E&O), handles financial harm from your professional work — a missed deadline, faulty advice, or an error that costs a client money.
A contractor needs general liability for job-site accidents and may need professional liability if they also provide design services. A consultant relies heavily on E&O. Map your real risks to the right coverage.
Frequently asked questions
＋ Do I need both general and professional liability?
Many service businesses do: general liability for physical incidents and professional liability for claims about your work or advice. Your contracts may require one or both.
Related on Business Insurance
Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.