⚡ Quick Verdict
General Liability covers physical harm and property damage. Professional Liability covers errors in your services. Most businesses need both, and they are not interchangeable.
1
✅ General Liability (CGL) Wins
7
🤝 Ties
0
✅ Professional Liability (E&O) Wins
📊 Full Feature Comparison
| Feature | General Liability (CGL) | Professional Liability (E&O) |
|---|---|---|
| What It Covers | Bodily injury, property damage, advertising injury | Professional errors, negligence, failed deliverables |
| Who Needs It | ALL businesses (fundamental coverage) | Service-based businesses, consultants, tech companies |
| Example Claim | Customer slips and falls in your office | Client sues because your advice caused financial loss |
| Typical Cost | ✅$400 – $1,500/year | $500 – $3,000/year |
| Required by Law? | Often required by leases/contracts | Required for licensed professionals (lawyers, CPAs) |
| Coverage Trigger | Occurrence-based (when incident happens) | Claims-made (when claim is filed) |
| Defense Costs | Covered within limits | Covered (may be inside or outside limits) |
| Typical Limits | $1M per occurrence / $2M aggregate | $1M per claim / $2M aggregate |
❓ Frequently Asked Questions
Do I need both General Liability and Professional Liability?
If you provide any professional services, YES. General Liability does NOT cover errors in your professional work, and Professional Liability does NOT cover physical injuries or property damage. They complement each other.
Which insurance should I buy first?
Start with General Liability (CGL) as it is the most fundamental business insurance. Add Professional Liability if you provide consulting, technology, financial, medical, legal, or other professional services.