Professional Liability vs. General Liability for Engineering Firms
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
If you run a civil, mechanical, electrical, structural, industrial, or design‑build practice, you’ve likely seen Professional Liability (E&O) and General Liability (GL) on every proposal. They sound similar, but they protect your firm from very different risks. Understanding the distinction is critical when you request an engineer business insurance quote and when negotiating client contracts.
What General Liability Covers (and Doesn’t)
General Liability addresses third‑party bodily injury and property damage that arise from your day‑to‑day business operations, not your professional services. Typical GL scenarios include:
A visitor trips and is injured in your office.
Your employee accidentally damages a client’s property during a site visit.
A slip‑and‑fall occurs at a project meeting you host.
GL does not cover design errors, calculation mistakes, missed specifications, or economic loss stemming from your professional services. It’s the “premises/operations” backbone of engineer business insurance, and many landlords and project owners require $1M per occurrence / $2M aggregate along with Additional Insured, primary & non‑contributory, and waiver of subrogation endorsements.
What Professional Liability (E&O) Covers (and Doesn’t)
Professional Liability (Errors & Omissions) responds to claims alleging a failure in your professional services, such as:
Design mistakes or omissions
Incorrect calculations or specs
Failure to meet the standard of care
Project delays or cost overruns tied to your professional output
E&O is triggered by alleged negligence in your design, advice, or technical services, not by office accidents. E&O limits commonly start at $1M per claim, but $2M–$5M+ are frequent for public works, infrastructure, hospitals, industrial facilities, and design‑build delivery. Deductibles/retention also matter and will influence the cost for engineering business insurance.
Side‑by‑Side: Key Differences
Trigger
GL: Physical injury or property damage from operations/premises.
E&O: Economic loss from errors/omissions in professional services.
Typical Buyer Requirement
GL: Landlords, GCs, facilities.
E&O: Project owners, municipalities, DOTs, architects.
Common Limits
GL: $1M / $2M standard (AI/PNC/Waiver often required).
E&O: $1M, $2M, $5M+ depending on discipline and contract size.
What It Won’t Do
GL: Won’t cover design mistakes.
E&O: Won’t cover slip‑and‑falls in your office.
Do Engineering Firms Need Both?
Yes. GL protects your premises and site‑visit exposure; E&O protects your design and advisory exposure. Most contracts require both. For larger or public contracts, add Umbrella/Excess over GL/Auto/Employers’ Liability and ensure E&O limits align with project risk.
Get the Right Liability Mix for Your Firm
Not every insurer understands discipline‑specific design exposure, contract endorsements, or E&O nuance. Wexford Insurance partners with top‑rated carriers that specialise in engineer business insurance, helping firms right‑size GL and E&O limits, deductibles, and endorsements, without overpaying.
👉 Request your engineer business insurance quote from Wexford Insurance today and protect your projects, contracts, and reputation.
