The policy that has your back when a client says you got it wrong
General liability covers slips and property damage. Professional liability covers the other category of risk: a client who claims your advice cost them money, your deliverable had errors, or you missed a deadline that caused financial harm. Whether the claim is valid or not, defense costs alone can exceed $50,000 before a settlement is reached. That is what E&O is for.
Premiums scale with profession and revenue because both affect the likely size of a claim. An engineer designing a $20 million bridge carries more exposure than a marketing consultant at the same revenue. Coverage limits of $1M per claim and $1M aggregate are standard for most solo practitioners and small firms. If a client contract specifies a higher limit, you can buy up. For businesses that also handle client data, pairing E&O with a cyber liability policy gives more complete coverage. For the liability that GL handles, see the general liability calculator.
By Jessica Martinez | Updated June 2026
Jessica covers small-business insurance and financial planning. Her work has appeared across several business and finance publications.