When it comes to managing risk, design professionals must carefully consider both commercial general liability (CGL) and professional liability insurance. While these two types of coverage both protect against third-party claims, they have key differences in how they work, when they apply, and what they cover. For lawyers working with design professionals, it is crucial to grasp the nuances in professional liability insurance in order to negotiate contracts and handle disputes effectively. By understanding these nuances and guiding clients accordingly, legal counsel can help design professionals navigate the complexities of insurance coverage and reduce their exposure to costly risks.

CGL v. Professional Liability Policies
A major difference between CGL and professional liability insurance is what risks they are designed to address and the form of the policy. CGL policies and endorsements are standardized across the industry/carriers and use forms issued by the Insurance Services Office, Inc. (ISO). CGL covers liabilities related to bodily injury, property damage, and personal/advertising injuries. It is meant to handle incidents occurring on the insured’s premises or due to non-professional activities.

Reprinted courtesy of Lara Yost, Carrington, Coleman, Sloman & Blumenthal, L.L.P. and Debrán O’Neil, Carrington, Coleman, Sloman & Blumenthal, L.L.P.
Ms. Yost may be contacted at lyost@ccsb.com
Ms. O'Neil may be contacted at doneil@ccsb.com