When working with corporate clients, enterprise contracts often mandate proof of insurance before issuing a vendor agreement. Understanding the boundary between General Liability and Professional Liability prevents costly coverage gaps.
General Liability Insurance (Bodily Injury & Property Damage)
General Liability protects against physical slip-and-fall accidents, property damage, and advertising injury. For example, if a client visits your studio and trips over a lighting cable, or you spill coffee on a client's server rack, General Liability covers the legal defense and medical damages.
Professional Liability / Errors & Omissions (E&O)
Professional Liability covers financial harm caused by your professional work, advice, code, or creative output. Examples include:
- A software engineer whose deployment bug causes an e-commerce site to go down during Black Friday.
- A marketing consultant whose advertising copy triggers a trademark infringement claim.
- A graphic designer accused of copyright infringement or project deadline breach.
Typical Costs for Freelancers
For solo consultants, copywriters, and developers, a comprehensive Business Owner's Policy (BOP) combining General Liability and $1,000,000 in E&O coverage typically costs between $350 and $750 per year.