Coverage comparison

General liability vs professional liability.

The distinction is usually about the kind of harm alleged and the service the business provides. The policy wording, facts, and jurisdiction control the result.

Questions to compare

• What did the business do or fail to do?
• Was the alleged harm physical, financial, data-related, or a mix?
• Does a contract require one or both coverage types?
• Are claims-made terms, prior acts, subcontractors, or professional exclusions relevant?
• What limits, deductibles, defense costs, and endorsements are being compared?

How to read the difference in practice

Start with the business activity and the alleged harm, then review the policy insuring agreement and exclusions. A consultant, designer, technology provider, or accountant may face financial-loss allegations tied to its service, while the same business may also face premises or third-party injury exposures. The two discussions can overlap without being interchangeable.

Comparison worksheet

• List every service, deliverable, product, location, and client contract.
• Separate physical injury or property damage scenarios from financial-loss allegations.
• Check claims-made status, retroactive date, continuity, reporting provisions, and prior acts.
• Compare limits, deductibles, defense treatment, exclusions, and endorsements line by line.