General liability vs. professional liability insurance
Two different insurance products that solve different problems. Pick the wrong one and the claim falls into the gap between them. Most subcontracts need both.
What each covers
Commercial General Liability (CGL)
The default commercial policy. Covers bodily injury and property damage caused by the policyholder's operations, premises, products, or completed work. Worker drops a tool on a parked car: CGL. Subcontractor installs a roof that fails and water damages the building two years later: CGL with the completed-operations endorsement (CG 20 37).
What CGL doesn't cover: financial losses caused by professional advice or service errors. That's where the gap shows up.
Professional Liability (Errors & Omissions, E&O)
Covers financial harm caused by mistakes in professional services. Architect designs a building that's structurally inadequate: E&O. Engineer specifies wrong load capacity: E&O. Software consultant deletes a database during deployment: E&O. Accountant's error costs the client a tax penalty: E&O.
E&O typically excludes physical injury — that's GL's territory. The two products are designed to be complementary, not overlapping.
The gap between them
The classic gap case: a design-build contractor designs and builds a structure. The design is flawed. The building partially collapses. Bodily injury and property damage result.
- The bodily injury and property damage triggers CGL.
- The flawed design triggers E&O.
- But CGL excludes the professional-services portion (the design error) and E&O excludes physical injury and property damage.
- Without both policies in force, part of the loss falls into the gap and isn't covered.
Verify both lines on every COI.
Drop the PDF. We extract every coverage line, including E&O on the 'Other' row, and check it against your contract template.
What contracts should require
- For physical-work subcontractors (general construction, mechanical, electrical, plumbing, demolition, roofing): CGL minimum, usually $1M / $2M with umbrella above.
- For design-build, MEP engineering, structural engineering, architectural services:CGL plus E&O. E&O limits typically $1M–$5M per claim.
- For pure professional services(consultants, accountants, software designers): E&O is the primary requirement; CGL may be optional depending on whether they ever come on site.
Verifying both on a COI
On an Acord 25, the GL row is fixed at the top of the coverages grid. E&O appears under "Other" — usually in the row marked "Errors and Omissions" or "Professional Liability." Watch for:
- Both rows present if the contract requires both.
- Limits meet contract minimums on each line.
- E&O policy form (claims-made vs occurrence). Most E&O is claims-made, which has implications for coverage after policy expiration — see our occurrence vs. claims-made guide.
- Retroactive date on the E&O — claims-made policies only cover claims for work done after the retroactive date.
Frequently asked questions
What's the difference between general liability and professional liability?
General liability (CGL) covers physical things — bodily injury and property damage caused by your operations. Professional liability (also called Errors & Omissions, or E&O) covers financial harm caused by mistakes in professional services: bad advice, incorrect designs, missed deadlines that cause downstream losses.
Do I need both?
Most commercial subcontractors do. A general contractor needs GL (someone trips on a job site) and may need E&O if they do design-build or professional services. A pure design firm needs E&O. Most operations that touch the physical world need GL; most operations that provide professional advice need E&O.
Does CGL cover professional services mistakes?
No. CGL specifically excludes professional services in most policy forms. If a sub gives bad engineering advice and the building has structural problems, GL won't respond — E&O will.
Do COIs show both?
Yes. On an Acord 25, GL appears in the standard 'Commercial General Liability' row and E&O typically appears under 'Other' with the policy details listed there. If the contract requires E&O and the certificate doesn't show it, you have a gap.
Related reading
Subcontractor insurance requirements: a GC's checklist
What a general contractor should require from every subcontractor: limits, endorsements, additional-insured language, and the verification workflow.
ReadWhat is a certificate of insurance (COI)?
A one-page summary issued by an insurance carrier proving a policyholder has active coverage — and the practical guide to verifying one.
ReadAdditional insured: what it means and how to verify it
Adding another party to a policy so they're covered too — and the language to look for to confirm it's actually been done.
Read