Q: Do I really need both General Liability and Professional Liability Insurance?
Yes. First of all, you'll probably need these policies to sign lease agreements, client contracts, or other business contracts, but more importantly, they protect you from totally different risk exposures.
General Liability Insurance is basic business insurance for the lawsuits related to third-party (nonemployee) property damage or injury that was NOT caused by your professional work. So a lawsuit over a slip-and-fall injury at your office would be covered by a General Liability policy.
E&O Insurance / Professional Liability Insurance is crucial because it covers lawsuits over damages caused to third parties (like clients) by your professional services. You know how important IT is for any company. Without IT, a company simply can't function. For example: if you're hired to update a client's network and they later suffer a major network breach, they could suffer reputation loss with clients, face punitive fines, and have to pay for credit monitoring for anyone affected. And if your work enabled the breach, they could sue you for damages. Your Errors and Omissions policy would pay for the cost of the lawsuit.
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