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If you have ever searched “what insurance does my business need” and come away more confused, you are not alone. The names sound alike and none of them plainly tell you what they do. The good news: for most small businesses it comes down to three or four coverages, and once you know what each protects, choosing takes a couple of minutes.
General Liability (GL)
General liability covers claims from other people for bodily injury or property damage — a client tripping at your office, or you damaging a customer’s property on a job. It is usually the cheapest coverage to start with and the one landlords and clients most often require before they will sign with you.
Professional Liability (E&O)
Professional liability, also called errors and omissions (E&O), covers you when a client says your work or advice caused them a financial loss, even if you did nothing wrong. General liability does not touch this. If a consultant’s advice is blamed for lost revenue or a designer misses a deadline that costs a client money, that is an E&O claim. Anyone paid for their expertise should treat it as their most important coverage.
Business Owner’s Policy (BOP)
A BOP bundles general liability with coverage for your business property — equipment, inventory, computers, and often lost income after a covered event. If you own physical assets, it is usually better value than buying the pieces separately, and bundling can save up to 5 percent.
Which coverage fits you?
- Consultants and advisors: E&O first, then GL.
- IT and tech: E&O plus cyber.
- Marketing and creative: E&O plus GL.
- Anyone with property: a BOP.
- Freelancers: GL if a client requires it, plus E&O if you advise or deliver work.
Not sure? Answer a few questions and see what is recommended for your business.
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. Available in 49 states plus Washington DC (not Alaska).
Frequently asked questions
What is the difference between general liability and professional liability?
General liability covers physical risks like injury and property damage. Professional liability (E&O) covers financial losses a client blames on your work or advice. Most service businesses need both.
Do I need both general liability and professional liability?
If you meet clients in person and also give advice or deliver work they rely on, yes. GL handles accidents; E&O handles claims about your work.
Is a BOP cheaper than buying coverage separately?
Usually. A BOP combines general liability and property coverage in one policy, and bundling can save up to 5 percent.
Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.