I tried to save money by only buying “Business Insurance” (General Liability). Then a client sued me because my website design caused their SEO ranking to tank. My General Liability carrier laughed and sent a denial letter. “We cover slip-and-falls,” they said. “We don’t cover bad code.”
Key Takeaways
- GL = Physical / PL = Mental: General Liability (GL) is for bodily injury and property damage. Professional Liability (PL/E&O) is for financial loss and advice.
- The “Professional Services” Exclusion: GL policies specifically exclude liability arising from professional advice.
- Client Contracts: Most corporate contracts require both. They want to know you are covered if you break their server (GL) OR if you design a bad logo (PL).
- The Bundle Discount: Buying them together (BOP) is usually only 10-15% more than buying just one.
The “Why”: The Coverage Trigger
The Trap: Thinking “I work from home, I don’t need General Liability” or “I only make art, I don’t need Professional Liability.”
- Scenario A: You visit a client, spill coffee on their $5,000 laptop. GL pays. PL denies.
- Scenario B: You design a brochure with the wrong phone number. PL pays. GL denies.
- Scenario C: You send a virus that wipes their data. Neither pays (unless you have Cyber), but PL is closer.
You need a Business Owners Policy (BOP) that bundles GL and PL.
The Investigation: I Quoted 3 Major Carriers
1. Progressive Commercial
- My Analysis: They push the bundle heavily. You can get GL for $30/mo and add E&O for $25/mo. The combined deductibles are easier to manage.
2. Next Insurance
- My Analysis: Their “Pro Package” automatically includes both. They understand that for a freelancer, the lines are blurred. It’s the easiest way to ensure no gaps.
3. Geico (Hiscox)
- My Analysis: They allow you to unbundle. If you only buy PL, they will warn you that you have no “Slip and Fall” coverage.
[IMAGE: Venn Diagram showing what GL covers vs what PL covers]
Comparison Table: The Bundle Math
| Coverage | Cost (Standalone) | Cost (Bundled) | Savings |
| General Liability | $35/mo | Included | – |
| Professional Liab | $50/mo | Included | – |
| Total | $85/mo | $65/mo | ~$240/yr |
Step-by-Step Action Plan
- Audit Your Risks: Do you meet clients in person? (Need GL). Do you give advice/designs? (Need PL).
- Check Client Contracts: Look for “Required Insurance.” It usually lists “Commercial General Liability” AND “Errors and Omissions.”
- Quote a BOP: Ask for a “Business Owners Policy” with a “Professional Liability Endorsement.”
- One Carrier: Keep both with one carrier to avoid finger-pointing if a claim overlaps.
FAQ
I never leave my house. Do I need GL?
Technically, less risk. But GL also covers “Libel/Slander” (Personal Injury) in some policies. It’s a cheap safety net.
Does Renters Insurance cover my business laptop?
No. Personal policies exclude business property. You need the BOP for gear coverage.
Can I add PL later?
Yes, but remember the “Retroactive Date” issue. Better to start it early.