General Liability vs. E&O Insurance: What’s the Difference for Your Business?

​Know the difference between General Liability and E&O coverage for your business.

Find out which protects you from lawsuits, mistakes, and more.

If you’re running a small business, two common types of insurance can protect you from expensive lawsuits--General Liability (GL) and Errors & Omissions (E&O). But they cover very different things.
Here’s what you need to know.

What Is General Liability (GL)?Covers physical risks like:

• Bodily injury (someone slips and falls at your job site or office)
• Property damage (you accidentally damage a client’s property)
• Advertising injury (accidental copyright infringement or defamation)

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Who Needs It:

• Contractors
• Landscapers
• Retailers
• Cleaning companies
• Event planners
• Freelancers with client-facing work

What Is Errors & Omissions (E&O)?Covers financial risks from professional services like:

• Giving bad advice
• Missing a deadline
• Making a costly error or omission in your service

Example: A real estate agent forgets to disclose a critical issue and the buyer sues for damages. GL won’t cover it—but E&O will.

Who Needs It:

• Consultants
• Realtors
• Accountants
• Insurance agents
• Marketing professionals
• Anyone offering advice or a specialized service

Why Some Businesses Need Both
If you work with people and provide advice, both GL and E&O coverage are crucial. A single incident could result in tens of thousands in legal fees and lost business.

Carrier Solutions We Recommend
Carriers like Liberty Mutual, Travelers, biBERK, and Next Insurance offer flexible GL and E&O options. Many allow you to bundle both into a Business Owner’s Policy (BOP) for savings and simplified billing.

Not Sure What You Need?We’ll assess your business risk and recommend the best coverage for your industry and budget. Whether you’re a new startup or an established pro, Corin Insurance has your back.

Source: SBA – Types of Business Insurance