Professional Liability vs General Liability Insurance For Technology, Computer & IT Services

I’m working on an insurance policy renewal for a Technology, Computer & IT Services based small business. This is for their Professional Liability / Errors & Omissions insurance coverage.

The insured wants to know the advantages of keeping this E&O insurance policy and the coverage differences compared to General Liability insurance.

Here’s a nice two-minute explanation from The Hartford to address this exact question:

If you ask me, all Technology, Computer and/or IT Services based businesses should carry both professional liability (E&O) and General Liability to protect their risk exposures, without question.

Your clients can sue you for a wrongful act in providing professional services, which can be the result of an act, error or omission; very often, it is not the result of a mistake, but rather displeasure with the outcome, and even frivolous lawsuits will incur defense costs

The best part is that both coverages can often be packaged into a single policy together.

-JK