What is the difference between general liability and professional liability?

General liability covers bodily injury and property damage, the physical stuff that happens when a customer trips in your office.

What is professional liability or errors and omissions (E&O) insurance?

Pays when a service provider's mistake causes a client a financial loss. Like malpractice for non-medical professions.

What specialty commercial classes does Philadelphia Insurance cover in Georgia?

Philadelphia Insurance Companies (PHLY) is backed by Tokio Marine Group and specializes in industry niches.

What insurance do Lawrenceville healthcare professionals need?

Lawrenceville has a large healthcare and medical professional community concentrated around Gwinnett Medical Center.

How does claims-made coverage work for Georgia professional liability?

Professional liability (errors and omissions) insurance is claims-made, meaning coverage applies only when both the work was performed and the claim is reported.

Professional Liability FAQs

What do claims-made limits mean on Georgia professional liability?

All FAQs

Quick answer: A claims-made policy only pays if both the incident and the claim are reported while the policy is active, and it uses a retroactive date; tail coverage extends the reporting window after cancellation.

What do claims-made limits mean on Georgia professional liability?

Most Georgia professional liability policies are written on a claims-made basis, which means the policy limit only applies if both the incident and the claim are reported while the policy is active. A claims-made policy also uses a retroactive date, the earliest point in time the policy will cover an incident. Work performed before that date is not covered, even if the claim is filed while the policy is active. See claims-made versus occurrence policies for the full mechanics of how the trigger works.

Why does tail coverage matter for a claims-made limit?

Canceling a claims-made policy, or switching carriers, does not end your exposure to claims from work already performed. Tail coverage, also called an extended reporting period, lets you report a claim after the policy ends for incidents that happened while the policy was active. Without it, a claim that arrives after cancellation for earlier work may have no coverage at all, regardless of how high the original limit was set.

How much professional liability coverage do Georgia businesses typically carry?

Most Georgia small businesses start with $1 million per claim and $1 million aggregate limit of professional liability, while larger firms or those in higher-risk fields carry $2 million, $5 million, or more. Professional liability, also called errors and omissions or E&O, pays to defend and resolve claims that your professional advice or services caused a client financial harm. For background on how the coverage works, see what professional liability insurance covers.

What is the difference between a per-claim limit and an aggregate limit?

The per-claim limit is the most the policy pays for any single claim. The aggregate is the most it pays across all claims filed in a single policy year. A $1 million per-claim / $1 million aggregate policy means one large claim exhausts the policy for the remainder of that year, leaving nothing for a second claim. Choosing a limit means estimating the worst realistic financial damage a client could suffer from a single mistake, then setting coverage at or above that figure.

What factors push the right E&O limit higher?

The dollar size of the projects or accounts you manage
Contract requirements, since many clients mandate a minimum E&O limit before hiring you
Your field, because engineering, financial advising, and IT consulting carry larger potential damages than some other professions
How many clients rely on the same advice at the same time, which multiplies exposure across a single policy year

A common mistake is choosing a lower limit to reduce the premium, then discovering that limit does not cover a single large claim or meet a key client's contract terms. Professional liability is one area where being underinsured can cost a business far more than the premium it saved.

Does the policy pay defense costs in addition to the claim limit?

Defense costs can be structured two ways. On some E&O policies, legal defense is paid in addition to your limit, so the full limit remains available for a settlement. On others, defense costs erode the limit, meaning legal fees eat into the same dollar amount that would otherwise pay a claim. A long lawsuit can run up hundreds of thousands of dollars in legal fees, so a policy that pays defense outside the limit provides meaningfully more protection for the same number on the declarations page.

What does a realistic E&O limit gap look like?

For example, a Georgia IT consulting firm carries a $1 million E&O limit. A botched system migration causes a client $1.4 million in losses and the client sues. The policy pays the first $1 million plus defense costs, but the firm owes the remaining $400,000 out of pocket. A $2 million limit would have covered the full claim for a modest increase in premium.

For example, a solo financial planner in Atlanta carries a $500,000 E&O limit because it was the minimum her carrier offered. A client later claims her advice caused a $600,000 retirement account loss. The policy covers the defense and $500,000 of the claim, but the planner remains personally exposed to the gap above that figure.

The right limit balances real exposure, contract requirements, and budget. A free coverage review can match your E&O limit to your actual risk, including any contract minimums your clients impose. For businesses weighing multiple commercial lines, see what other commercial coverage Georgia businesses commonly need.