By Jeff Forbes

I’ve heard it often. Why do I need both general liability and professional liability?  What’s the difference?

In simple terms, general liability policies are designed to cover tort liabilities that cause bodily injury or property damage resulting from your business operations. 

Professional liability policies typically insure against liability for monetary or other damages resulting from professional services. 

The answer would be easy if we could stop there. But most general liability policies are endorsed to exclude claims, even bodily injury and property damage claims, that arise from professional services. 

And most professional liability policies exclude claims for bodily injury and property damage. 

Grand Canyon Sized Gap

There is a gap the size of the Grand Canyon between the two. 

This isn’t an issue for many businesses as their professional services won’t cause bodily harm or property damage. It is a major issue for integrators.

Consider your design or technical services are performed on machinery and that the work includes the safety systems. 

If an employee of the firm were to injure themselves and suffer bodily injury, you could face litigation. You would expect your general liability policy to respond since it is a bodily injury claim. 

If your policy had a professional services exclusion on it, the answer would likely be No! Looking toward your professional liability policy you see exclusions for bodily injury claims. Again the answer is No! You are left defending yourself.

This could also hold true for allegations that your work resulted in damage to the equipment itself, property damage. 

The same scenario would play out.

CSIA Can Help

Now it’s time for the commercial. Understanding the exposures that the integrator faces, the CSIA insurance program was created to bridge the gaps. The professional liability coverage and the general liability coverage are on the same policy. 

There are no professional exclusions on the general liability coverage form and the professional coverage form includes contingent bodily injury and property damage. In the situations above, you have defense and coverage for damages. 

ECBM can quickly review your current coverage to help identify if you have gaps. 

Learn more here.

Jeff Forbes is a blog contributor specializing in risk, legislation, regulations and casualty topics.