Operating a business in London’s dynamic property and service sectors involves a range of risks — from a visitor slipping in a communal lobby, to a consultant providing incorrect advice to a landlord. Two insurance terms often discussed are general liability insurance (sometimes called public or commercial general liability) and professional liability insurance (also known as errors & omissions or professional indemnity).
At Fraser Bond, we help clients across property sales, lettings, compliance, and advisory services understand how these coverages differ, when each is needed, and how coverage should reflect the London context of business, asset value and tenant/landlord exposure.
General liability insurance (GL) covers risks of bodily injury, property damage or personal injury claims by third-parties arising from your business operations or premises. It is often one of the first layers of protection any business should consider.
Typical claims that GL responds to include:
A visitor slipping on a wet floor in a property lobby and sustaining injury.
A contractor accidentally damaging a client’s property while performing simple works.
A business being accused of libel, slander or copyright infringement linked to its advertising (in some policies).
In the UK context, public liability is more commonly used, but the term “general liability” is often used in more commercial/broader contexts.
Professional liability insurance (PL) — sometimes called professional indemnity (PI) or errors & omissions (E&O) — protects businesses that provide professional advice or services from claims of negligence, error or omission that leads to a client’s financial loss.
Examples include:
A property management consultant providing incorrect regulatory advice to a landlord, leading to financial penalty.
An architect, surveyor or property advisor giving faulty valuation or specification that causes client loss.
A design firm or refurbishment consultant failing to deliver promised performance, causing the investor loss.
Unlike GL, PL is less about physical injury/damage to third-parties and more about financial loss resulting from professional service.
Here are some of the principal distinctions:
| Feature | General Liability (GL) | Professional Liability (PL) |
|---|---|---|
| Risk Type | Bodily injury / property damage / personal injury to third-parties | Financial loss from error/omission/negligence in professional services |
| Typical Claims | Slip-and-fall; accidental property damage; visitor injury | Incorrect advice, error in service, missed requirement, design flaw |
| Who needs it? | Any business with premises, visitors, products or operations that may injure or damage | Businesses that provide consulting, advice, design, professional services |
| Trigger | Occurrence of physical damage/injury | Error/omission leading to financial loss, often “claims-made” policy basis |
| Australian/US vs UK terminology | GL more common in US; UK uses “public liability” often | Professional liability also called PI or E&O in UK/US context |
Because London businesses often both operate physically and provide services/advice, it is increasingly common to require both GL and PL to ensure full protection.
If you are involved in London property — as a landlord, letting agent, maintenance contractor, designer or property manager — your risk profile likely spans both physical operations and service/advice functions.
A landlord with communal areas needs GL to cover visitor injury or damage in those areas.
A letting agent advising on compliance or regulatory frameworks needs PL in case their advice is flawed.
A maintenance business performing physical works plus consultancy needs both GL (for physical damage/injury) and PL (for advisory errors).
Property development firms often specify in their contracts that consultants and contractors maintain both types of cover for works and advice.
Without both, your business may face an uncovered claim. For example, a contractor whose work causes a leak might require GL cover; but if the leak was due to flawed specification or advice the contractor gave, PL may be necessary.
When selecting GL and/or PL insurance for a London-based property or service business, Fraser Bond recommends you focus on:
Scope of activities – Are you purely physical operations, or is advice included? Broad scope may mean you need both.
Policy limits – Ensure cover limits are sufficient for your risk, especially in London’s high-value property context.
Policy triggers – Many PL policies are claims-made (cover triggered when claim is made) rather than occurrence-based.
Exclusions & endorsements – For example, GL may exclude professional advice; PL excludes injury/physical damage.
Contractual requirements – London property contracts, tenders or lease arrangements often stipulate minimum insurance for both types.
Integration with other insurance – Employer’s liability, property cover, cyber cover, product liability might also be needed.
Review annually – As your business, premises, services grow or change, your risk changes and so should your cover.
Fraser Bond offers integrated advisory support across property, business operations and risk management. We help clients with:
Assessing what types of liability insurance are required given their property service or advisory role.
Reviewing insurance quotes and policy wordings to ensure both GL and PL cover where needed.
Advising on how insurance links to property liability, lease obligations, landlord/tenant exposure and compliance.
Supporting negotiations or asset purchase scenarios where insurer cover and liability history matter.
Ensure your London business is fully protected with the right mix of general liability and professional liability insurance.
Visit FraserBond.com or contact our London advisory team for bespoke guidance on liability cover aligned with your property or service relationship.
