Short answer
Professional liability and errors and omissions (E&O) are the same coverage, so you don’t need to buy both. When comparing professional liability vs general liability, the difference is the type of claim each one responds to. Professional liability generally responds to claims about your design work or advice. General liability generally responds to bodily injury and property damage. Many new architecture and engineering firms end up needing both, though your contracts and operations decide the final answer.
Are E&O and professional liability the same thing?
Yes. Insurance companies, brokers and clients use the two names for the same type of policy. You may see “E&O,” “professional liability,” “PL” or “professional indemnity” depending on who wrote the contract or the quote.
For architects and engineers, this policy responds when a client says your professional services caused them a financial loss. A drawing error, a missed code requirement or a late deliverable can all lead to that kind of claim.
Policy forms differ, so the label matters less than what the policy says about professional services. You can read more about how a specialized A&E form differs from a general one in our article on MPL vs. an A&E policy.
Professional liability vs general liability: what each one covers
General liability typically responds when your business causes bodily injury or property damage to someone else. A client trips in your office, or a site visit leads to damage on a neighboring property. These are physical events.
Professional liability responds to financial harm from the services you provide. Nobody has to be hurt for a claim to arrive. A client can simply believe your plans cost them money.
Most general liability policies exclude professional services, and most professional liability policies exclude bodily injury and property damage. The two policies tend to sit side by side, each covering what the other leaves out. Exact wording depends on the policy, so review the forms before you assume either one fills a gap.
You can see how we approach each type on our professional liability page.
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Get a Quote →When does a BOP make sense for a new firm?
A business owner’s policy, or BOP, bundles general liability with property coverage for your equipment, computers and office contents. Small firms often choose a BOP because it costs less than buying those coverages separately and keeps them on one policy.
A BOP can fit well if your firm leases an office, owns computers and plotters, and meets clients in person. It may be less useful if you work from a home office and own little equipment. In that case, you might only need a standalone general liability policy, or none at all, depending on what your contracts ask for.
A BOP does not replace professional liability. Most BOP forms leave out professional services, so architects and engineers usually still need a separate professional liability policy. Our general liability and property (BOP) page explains how that package works.
Example: a two-person architecture firm
Two architects leave a larger firm and open a small studio in a leased office. Their first client is a developer who wants a $1 million professional liability limit in the contract. The landlord also wants proof of general liability before handing over the keys.
The studio buys a professional liability policy to meet the developer’s requirement. It adds a BOP to satisfy the lease and cover its computers and furniture. Each policy answers a different question, and neither one stands in for the other.
If the same studio worked from a spare bedroom and never met clients on site, the BOP might not be necessary unless a contract asked for it.
What to check before you buy
- What do your client contracts and your lease require? Look for both coverage types and the minimum limits.
- Does the professional liability policy name architects and engineers, or does it use a generic form?
- Does the BOP exclude professional services? Read the exclusions.
- What deductible or retention applies to each policy?
- Will your clients ask for additional insured status or other endorsements?
Sending us the insurance sections of your contracts is often the fastest way to find out what you need.
Is E&O insurance different from professional liability insurance?
No. Both names describe the same coverage for claims about professional services. The wording inside the policy decides what is actually covered, so compare forms and not just titles.
Can general liability cover a design error?
Generally, no. General liability policies typically exclude professional services, which is why architects and engineers carry professional liability separately.
Do I need both professional liability and general liability to start a firm?
Many new firms do, because clients often ask for professional liability and landlords or project owners often ask for general liability. Your own contracts and operations determine what is required.
Does a BOP include professional liability?
BOP forms usually leave professional services out. Check the policy language, and ask whether a separate professional liability policy is needed.
Your firm's situationWant us to check how your policy handles this?
Send us the policy or the contract. We will tell you what we see.
