Question 1

What is the difference between general liability and professional liability?

Accepted Answer

The simplest way to tell them apart is this. General liability covers physical harm, meaning bodily injury or property damage to others. Professional liability covers financial harm caused by your advice, your services, or your professional mistakes. Most service businesses need both, because each one covers a risk the other leaves out. General liability is the broad foundation. It 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. These are classic general liability claims. Professional liability, also called errors and omissions, works differently. It 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. Here is a clear example that shows the gap. Say you are an accountant in Augusta. A client slips in your waiting room and is hurt. That is general liability. Now say you make an error on that same client's tax filing, and they owe 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 your legal defense. One business, two completely different risks, two different policies. This is why 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 hole. 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. Figuring out which mix you need depends on what your business actually does. We can map your real exposures and recommend the right combination in a free coverage review.

Question 2

What does claims-made mean on a professional liability policy?

Accepted Answer

"Claims-made" describes when a professional liability policy will respond. A claims-made policy covers a claim only if the claim is first made against you while the policy is active, and usually only if the act that caused it happened after a set retroactive date. Professional liability, sometimes called errors and omissions, pays to defend and settle claims that you made a mistake in your professional work. This is different from an "occurrence" policy, which covers any incident that happened during the policy period no matter when the claim shows up later. With claims-made, the timing of the complaint is what counts, so you must keep continuous coverage in force to stay protected. Two terms control how it works. The retroactive date is the earliest point your past work is covered. Tail coverage, also called an extended reporting period, lets you report claims after you cancel or switch policies for work you did while insured. For example, a Georgia consultant gives advice in 2024 under a claims-made policy. A client sues in 2026 saying the advice cost them $80,000. If the consultant kept the policy active or bought tail coverage, the claim is covered. If she dropped the policy with no tail, she pays out of pocket. The retroactive date and tail are easy to lose track of when you change carriers. Let us check your professional liability dates with a free coverage review at our coverage review page.

Question 3

Do I need professional liability if I am an LLC?

Accepted Answer

Yes, you most likely still need professional liability insurance even if you have an LLC, because an LLC and insurance protect you from two different things. An LLC can shield your personal assets from many business debts, but it does not pay for claims, and it does not always hold up the way owners expect. Think of it this way. An LLC is a legal wall between your business and your personal finances. Insurance is the money that actually pays a claim. If a client sues you over a professional mistake, the LLC may keep them from coming after your house and personal savings, but it does nothing to cover the cost of defending the lawsuit or paying a settlement. That money has to come from somewhere, and without insurance it comes out of your business, which can drain or even close it. There is another important catch. The LLC liability shield is not absolute. Courts can sometimes set it aside, often called piercing the corporate veil, if business and personal finances are mixed or formalities are not followed. And in many professional fields, you can be held personally responsible for your own errors regardless of the LLC. So leaning on the LLC alone leaves real exposure. Here is a realistic example. You run a single member consulting LLC in Marietta. A client claims your advice cost them a major contract and sues for $80,000 plus legal fees. Even if your LLC protects your personal home, the business still has to pay for the defense and any settlement. Legal defense alone can run $25,000 or more before the case is resolved. Professional liability, also called errors and omissions, would cover that defense and the settlement up to your policy limits. Without it, your LLC absorbs the full hit. The smart structure is to use both together. Let the LLC do its job separating business and personal assets, and let professional liability do its job paying claims and defending you. Many owners also pair it with general liability for physical injury and property claims. We can review your LLC's actual risk and recommend the right coverage in a free coverage review.

Question 4

What is tail coverage for Georgia professional liability insurance?

Accepted Answer

Tail coverage is an extension that lets you report claims after your professional liability policy has ended, as long as the underlying work was done while the policy was active. Its formal name is an extended reporting period. For Georgia professionals leaving a policy behind, tail coverage prevents a dangerous gap in protection. Professional liability is usually written on a claims-made basis, meaning the policy must be active when a claim is reported. That creates a problem when you retire, switch insurers, or close your practice, because a client could bring a claim months or years after your work is finished. Tail coverage solves this by keeping your ability to report claims open after the policy ends. Here is when tail coverage matters: Retirement, so claims about past work are still covered after you stop practicing. Switching carriers, when your new policy will not reach back to cover old work. Closing or selling a business, to protect against claims tied to prior services. For example, a Georgia consultant retires in 2026 after completing a project earlier that year. In 2027 a former client files a claim alleging a costly error. Without tail coverage, the expired policy would not respond. With a tail purchased at retirement, the claim can still be reported and covered, protecting the consultant's personal finances. Tail coverage is usually bought as a one-time purchase when a policy ends, and the cost depends on the prior premium. A free coverage review arranges an extended reporting period and confirms how past work stays covered.

Question 5

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

Accepted Answer

Claims-made coverage protects you only if a claim is first brought against you while the policy is active, and usually only for work done after a set starting date called the retroactive date. This is the standard way Georgia professional liability is written, so understanding the timing is essential. Professional liability, also called errors and omissions, pays to defend and settle claims that you made a mistake in your professional services. The key feature is timing. A claims-made policy responds based on when the claim is made, not when the mistake happened. So the policy must be in force on the day the client brings the complaint. This is different from an occurrence policy, which covers an incident based on when it happened, regardless of when the claim shows up later. Two terms control how a claims-made policy behaves: Retroactive date, the earliest point at which your past work is covered. Anything you did before that date is not covered, even if the claim comes in while the policy is active. Tail coverage, also called an extended reporting period, which lets you report claims for a time after the policy ends, for work you did while it was in force. Because of this structure, you must keep continuous coverage to stay protected. If you let a claims-made policy lapse without buying tail coverage, a claim that arrives after the lapse, even for work you did while insured, may not be covered. For example, a Georgia accountant prepares a return in 2024 under a claims-made policy. In 2026, the client sues, claiming a $75,000 error. If she kept the policy active or bought tail coverage when she switched carriers, the claim is covered. If she dropped the policy with no tail and no retroactive coverage on the new one, she pays the defense and settlement herself. When you move to a new claims-made policy, the best practice is to ask the new insurer to honor your existing retroactive date, often called full prior acts coverage. That way your years of past work stay protected under the new policy and you may not need to buy tail at all. If the new insurer will not match the date, tail coverage on the old policy becomes the safety net that closes the gap. The retroactive date and tail are easy to mishandle when you change insurers. We can review your claims-made dates and make sure there are no gaps with a free coverage review at our coverage review page.

Professional liability insurance for the work you actually do.

What professional liability covers.

Errors and omissions in professional work

Defense costs

Subpoena and regulatory response

Personal injury and advertising injury

What professional liability does not cover.

Bodily injury and property damage

Intentional or fraudulent acts

Prior acts before the policy retroactive date

Contractual liability assumed beyond reasonable scope

Who needs Professional Liability Insurance (Errors and Omissions).

What you can expect to pay.

Claims tips

Carriers We Work With

Chubb Commercial Insurance

CNA Commercial Insurance

Hanover Commercial Insurance

Liberty Mutual Commercial

Next Insurance

Philadelphia Insurance Companies

The Hartford Commercial Insurance

Travelers Commercial Insurance

Georgia PL: industry-driven pricing, claims-made form standard

If you have a claim in Georgia

Common Professional Liability Insurance (Errors and Omissions) Questions

Professional Liability Insurance (Errors and Omissions): frequently asked questions

Selling advice or services without errors and omissions?