COMMERCIAL LIABILITY INSURANCE

Liability coverage protects your business when a third party claims your operations, products, services, or decisions caused harm. Different types of liability coverage respond to different exposures. Understanding where one policy ends and another begins is essential to avoiding gaps.

Commercial General Liability (CGL) Commercial General Liability protects against common third-party claims involving bodily injury, property damage, and certain personal or advertising injuries. It typically includes coverage for:

• Premises Liability – Injuries occurring at your place of business

• Operations – Damage or injury caused while performing work

• Products & Completed Operations – Claims arising from products sold or work completed

• Contractual Liability – Assumed liability under certain contracts

• Damage to Rented Premises – Limited protection for certain damage to leased space

• Personal & Advertising Injury – Claims such as libel, slander, or certain advertising-related allegations

CGL is foundational — but it does not cover professional mistakes, errors in advice, or financial loss resulting from specialized services.

Professional Liability (Errors & Omissions) Professional Liability, often referred to as Errors & Omissions (E&O), protects businesses that provide professional services or expertise.Unlike CGL, which responds to physical injury or property damage, Professional Liability addresses financial harm resulting from alleged negligence, errors, omissions, or failure to perform professional duties.This coverage is common for:

• Accountants

• Architects and engineers

• Attorneys

• Insurance agents

• Real estate professionals

• Consultants

• Medical providers

• Technology and service-based businesses

Professional Liability policies are typically written on a claims-made basis and may include defense costs within policy limits.Many professional service businesses require both General Liability and Professional Liability coverage to ensure comprehensive protection.Why the Distinction MattersA business can carry strong General Liability coverage and still face uncovered claims if the allegation involves professional advice or financial loss rather than physical damage. Evaluating how these policies work together is key to avoiding unintended coverage gaps.

Professional Liability

This fills gaps in the CGL for professional services or positions.

• Errors & Omissions (E&O) [aka malpractice insurance or professional liability] for those who offer professional services, e.g., accountants, architects, attorneys, stockbrokers, engineers, barbers/beauticians, real estate agents, insurance agents, the medical community

• Directors & Officers (D&O) – Protects directors and officers of a corporation from a claim of alleged mismanagement, unfair trade practices, etc.

Each policy will have stipulations, limits, and exclusions. Extensions, riders, and floaters are available to fill any gaps. The information on this website is an overview of the types of insurance you may be able to purchase, but does not comprise full explanations of policy types nor does it guarantee any particular coverage or policy.