What GL does not cover
| Claim | General liability | Professional liability |
|---|---|---|
| A worker's mistake injures a customer | Yes | No |
| A tool damages the customer's floor | Yes | No |
| Your design or plans are wrong and the client must redo work | Usually excluded | Yes, if it arises from a covered professional service |
| Bad cost estimate or project management causes delay and loss | Usually excluded | May be covered, subject to terms |
| Failure to follow specifications you were hired to prepare | Usually excluded | May be covered |
Who should consider it
- Design-build contractors, who design as well as build
- Construction managers and owner's representatives
- Contractors who prepare plans, drawings or engineering
- Contractors who recommend materials or systems and are paid for that advice
- Anyone whose contract requires professional liability limits
How it is written
- Most professional liability is claims-made. The claim must be made while the policy is in force, and the policy has a retroactive date
- Defense costs are often inside the limit, so they reduce what is left for a settlement
- Some contractor programs combine it with pollution liability, which can cost less than two separate policies
Get a professional liability quote
Tell us what you design, advise or manage and your revenue and we will show you carriers and limits. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
Is professional liability the same as general liability?
No. General liability covers bodily injury and property damage. Professional liability covers financial loss from professional errors in design or advice.
Does a contractor need E&O insurance?
Only if you provide design, engineering, management or advice, or a contract requires it. A contractor who only builds to someone else's plans usually does not.
What does claims-made mean?
The policy covers claims first made during the policy period, subject to the retroactive date. It does not cover claims made after the policy ends unless you buy extended reporting.
Can I get professional liability with pollution liability?
Some contractor programs offer them together.