General liability coverage pays defense costs and damages if your business is sued for bodily injury or property damage to a third party — for example, a customer slipping in your shop. It does not cover injuries to your own employees (workers' comp does that) or claims of professional negligence (errors & omissions do...

Professional liability — sometimes called errors & omissions (E&O) — covers claims arising from professional advice or services you provide. If clients rely on your work product (consultants, designers, accountants, IT, real estate, healthcare), it is usually worth carrying. Some industries and licensing boards require...