General liability and professional liability cover different exposures

Describe the allegation, not just the business

Hypothetical example: a visitor alleges an injury in an office, while a client alleges financial loss from professional advice. Both involve a business, but the allegations can point toward different policy forms. An insurer still has to assess the actual wording, facts and exclusions.

A policy label does not establish that every service your business offers is insured. Check the named insured, declared professional activities, territorial limits and excluded work.

A package does not remove every gap

NAIC describes a BOP as typically combining property, business interruption or continuation, and liability. It also explains that professional-practice liability and other specialized exposures are not typically included. Read the package rather than treating “business insurance” as complete protection.

Cyber, crime, employment and management risks require separate attention. A cyber incident can raise several issues without every resulting loss fitting one coverage grant.

Check claim timing and reporting

Professional policies often involve claims-made provisions. Ask how the reporting period, retroactive date and any extended reporting arrangement operate. Do not assume a policy bought after an allegation can cover the earlier event.

If you are changing insurers, ask a licensed broker to review continuity and any proposed gap. A certificate or contract requirement alone does not establish that all of those conditions have been met.

Questions for the broker

• Which services and allegations fall within the insuring agreement?
• How are defense costs treated relative to the limit?
• Which exclusions or contract-liability provisions matter?
• What are the reporting requirements and relevant dates?
• Does a client contract ask for coverage this proposal does not provide?

Sources

• NAIC: Small business insurance
• NAIC: State insurance departments