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.

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

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.

Professional Liability FAQs

Do I need professional liability if I am an LLC?

All FAQs

Quick answer: An LLC protects your personal assets from most business liabilities, but it does not stop a client from suing the business itself for professional errors.

Does an LLC protect you from professional liability claims?

Most business owners still need professional liability insurance even with an LLC, because the two protect against different things. An LLC can shield personal assets from many business debts, but it does not pay for claims and does not always hold up the way owners expect.

An LLC is a legal wall between the business and personal finances. Liability insurance is the money that actually pays a claim. If a client sues over a professional mistake, the LLC may keep them from coming after a home or personal savings, but it does nothing to cover the cost of defending the lawsuit or paying a settlement. Without insurance, that money comes out of the business.

When can the LLC liability shield fail?

The LLC shield is not absolute. Courts can sometimes set it aside, in a process called piercing the corporate veil, if business and personal finances are mixed or corporate formalities are not followed. In many licensed professions, state law also allows a client to hold an individual personally responsible for their own errors regardless of the LLC structure.

For example, a single-member consulting LLC in Marietta faces a lawsuit claiming the firm's advice cost a client a major contract, with damages sought at $80,000 plus legal fees. Even if the LLC protects the owner's personal home, the business still has to pay for its own legal defense and any settlement. Defense costs alone can run $25,000 or more before a case is resolved. Professional liability insurance, also called errors and omissions coverage, would cover both the defense and the settlement up to the policy limit. Without it, the LLC absorbs the full amount.

Understanding the policy structure matters here too. Our overview of claims-made vs. occurrence coverage explains which structure most professional liability policies use and what that means for coverage of past work.

What does professional liability insurance actually pay for?

Professional liability, also called errors and omissions (E&O), covers claims that your professional services caused a financial loss for a client. It pays legal defense costs, settlements, and judgments up to the policy limit. It does not cover bodily injury or property damage to third parties. For a full breakdown of coverage scope, see our overview of what professional liability insurance covers.

For example, if a client visiting your office trips on a loose rug and breaks a wrist, that is a general liability claim, not a professional liability claim. Only general liability responds to that type of injury; professional liability addresses financial harm from the services you deliver, not physical incidents on your premises.

How do professional liability and general liability work together for an LLC?

The strongest setup combines both coverages. Professional liability addresses claims that advice or work product caused a client's financial harm. General liability addresses claims that the business caused physical injury or property damage to someone. Many small business LLCs also evaluate whether a business owners policy (BOP) bundles the right coverages efficiently, since a BOP typically combines general liability and commercial property in one policy. Professional liability is then added separately. Our overview of which businesses qualify for a BOP explains the thresholds carriers use. For a broader look at what commercial coverage an LLC may need, see what other commercial coverage Georgia businesses need.

A free coverage review at Olive Cover, the consumer brand of Olive Insurance Services, LLC, can assess an LLC's actual risk and identify the right combination of coverages.