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.

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 is the difference between general liability and professional liability?

All FAQs

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

General liability covers physical harm to others: bodily injury or property damage caused by your business operations. Professional liability covers financial harm caused by your advice, your services, or your professional mistakes. Most service businesses need both, because each covers a risk the other leaves out entirely.

What does general liability cover?

General liability responds when someone outside your business is physically hurt or their property is damaged because of your operations. A client trips over a cord in your office and breaks an arm. Your employee knocks over and shatters expensive equipment at a customer's site. Those are classic general liability claims. Many commercial leases and client contracts require a certificate of general liability before work begins, so this is often the first policy a business needs.

What does professional liability cover?

Professional liability, also called errors and omissions, responds when your professional work causes someone a financial loss even though no one was physically injured and nothing was broken. A mistake in your design, a missed deadline, bad advice, or an error in a report that costs your client money are all professional liability claims. General liability would not pay for any of them.

For example, an accountant in Augusta makes an error on a client's tax filing, and that client owes the IRS an extra $30,000 in penalties and interest. No one was physically hurt, so general liability does not apply. Professional liability is what covers the financial loss and the accountant's legal defense costs.

Is there any overlap between the two policies?

Very little. The policies are designed to be complementary. General liability has a bodily injury and property damage trigger. Professional liability has a financial loss from a professional service trigger. A single event can sometimes touch both: a contractor's faulty installation causes a client's equipment to overheat (general liability for the damaged equipment) and the client misses a production deadline because of it (professional liability for the resulting financial loss). Most claims fall clearly into one category.

For example, a web developer whose code error takes a client's e-commerce site offline during a major sale weekend causes financial harm with no physical damage. That is a professional liability claim. If that same developer drops a laptop on the client's desk and damages it, that is a general liability claim.

Who typically needs both policies?

Consultants, accountants, designers, real estate agents, IT providers, and similar professionals usually carry both. General liability handles the slip and fall and the broken laptop. Professional liability handles the mistake, the bad advice, or the missed deadline. Relying on only one leaves a serious exposure gap. Many smaller businesses package general liability into a business owners policy and then add professional liability as a separate policy to cover the advice and services side of their work.

How do I decide which combination fits my business?

The right mix depends on what your business does, who your clients are, and what contracts require. A licensed advisor can map your real exposures and recommend the right combination. Request a free coverage review and our team will identify the gaps. Explore commercial coverage options to see the full range available through Olive Cover.