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Public Liability and Professional Indemnity Insurance: What is It and Who Needs It?

Public Liability and Professional Indemnity Insurance: What is It and Who Needs It?

Public Liability and Professional Indemnity insurance are types of liability insurance, with some differences. Both policies provide coverage for acts of negligence in the event of harm to a third-party. The main difference between the two is that professional indemnity insurance is usually carried by a firm serving in an advisory capacity to its clients.

Public Liability Insurance

This coverage protects businesses against financial loss in the event of being held liable to third-party for injury, death, or loss or damage to property resulting from negligence. An example of a claim that might be filed under a Public Liability policy is a case where customer trips in your store over some stock that was left in the aisle.

Professional Indemnity Insurance

This type of liability insurance covers professional negligence in providing advice to a client that in their financial physical or material loss. An example of a claim under a Professional Indemnity policy would be where a real estate agent is sued for failing to disclose defective conditions on a property prior to the closing.

Who Needs Public Liability and Professional Indemnity Insurance?

All businesses who interact with the public in any way should consider carrying liability insurance. This would include advisory-based businesses, businesses with company vehicles, retail businesses, contractors and other businesses that deal with customers. A licensed insurance agency that specializes in the area of business insurance can help ensure that you choose the right insurance for your company.