As an attorney, you already understand the importance of managing risk. But when it comes to insurance, knowing the difference between general liability and professional liability coverage isn’t just a technicality—it’s the key to making sure your practice is actually protected.
Many firms assume that their general liability or business owner’s policy has them fully covered. Unfortunately, that’s not the case. While general liability insurance protects you from things like bodily injury or property damage, it won’t help if a client sues you for legal malpractice.
That’s where professional liability insurance coverage—also known as errors and omissions insurance—comes in.
In this article, we’ll break down professional liability insurance vs general liability, explain what each policy covers, and show why both are essential for any law firm that wants to confidently serve clients while protecting its hard-earned reputation.
What Does General Liability Insurance Cover?
General liability insurance is designed to protect your law firm from the kinds of risks that almost any type of business might face. It’s broad, essential coverage—and in many cases, it’s required just to lease office space or work with vendors.
So what does it actually cover?
Typically, general liability insurance protects against:
- Bodily injuries and property damage: If a client slips and falls in your office or your staff accidentally damages a landlord’s property, this policy helps cover medical expenses or repair costs.
- Advertising injury: This includes claims of copyright infringement, slander, or libel resulting from your firm’s marketing materials or website content.
- Legal defense costs: If someone sues your firm over a covered incident (such as the aforementioned slip and fall), this policy may pay for your legal defense, settlements, or judgments.
While general liability offers a wide range of protections, it has a clear boundary: it doesn’t cover mistakes made in the course of delivering legal services. That’s the job of a different policy altogether.
What Does Professional Liability Insurance Cover?
Unlike general liability, professional liability insurance is specifically designed to protect you from claims related to the work you do as a lawyer—your advice, your documentation, your representation.
Also known as errors and omissions (E&O) insurance, this policy helps cover your firm if a client claims you made a mistake, failed to deliver expected results, or caused them a financial loss in the course of providing professional services.
Common scenarios it covers include:
- Missed deadlines or court filings
- Misinterpretation of legal statutes or contractual language
- Breach of fiduciary duty
- Failure to disclose key information
- Accusations of negligence (even when unfounded)
In all of these cases, professional liability insurance can help pay for your legal defense costs, as well as any settlements or judgments that result from the claim.
Importantly, this type of policy isn’t just for major errors. Sometimes, all it takes is a perceived mistake for a client to pursue action—and defending your reputation in court isn’t cheap.
If your firm doesn’t already carry a dedicated professional liability policy, now is the time to evaluate your exposure.
Professional Liability Insurance vs. General Liability: Why You Need Both
Some law firms assume that if they already have general liability insurance—or a bundled business owner’s policy—they’re fully protected. But here’s the truth: general and professional liability insurance serve completely different purposes. And to fully protect your business, you need both.
Here’s a simple breakdown:
- General liability protects against claims like bodily injuries and property damage, as well as advertising injury or copyright infringement tied to your firm’s marketing.
- Professional liability insurance covers claims related to your professional services—things like errors in legal advice, missed deadlines, or negligence.
Let’s say a client trips over a cord in your office and sues for their injuries. That’s covered by general liability. But if a client sues because they believe your legal work cost them financially—that’s a professional liability issue, and it’s not covered by general liability insurance.
Professional liability isn’t included in most standard business policies. You typically need to purchase it separately from your general liability or BOP coverage. It’s a specific, essential policy—especially in high-risk professions like law.
For complete protection, your firm needs a combination of both policies, tailored to your area of practice and client risk.
Protect Your Firm with the Right Coverage
There are many types of insurance available to law firms—but that doesn’t mean every policy offers the protection you actually need. The key is knowing how to pair the right coverages for your risk profile.
When it comes to general liability vs professional liability, it’s not a matter of choosing one or the other. It’s about understanding that both are essential. General liability covers the physical and operational risks of running a business. But only professional liability insurance is designed to defend your work as a lawyer.
If you’ve been relying on a bundled policy or assuming your coverage extends to client-related claims, it’s time to take a closer look. Because in the end, it’s not just about insurance vs professional liability—it’s about building a policy stack that works together to truly protect your business.
At Kouwenhoven & Associates, we specialize in matching law firms with the exact coverage they need. We know the difference between generic coverage and policies designed for legal professionals—and we’ll help you build a plan that protects your reputation, your practice, and your peace of mind.
Let’s make sure your firm is covered.
Contact us today for a professional liability insurance review.
