What Is The Difference Between Public Liability & Professional Indemnity Insurance?

As a business professional, you are probably aware of both Public Liability and Professional Indemnity Insurance, but do you actually know the difference between the two types of cover?

Public Liability (PL) insurance and Professional Indemnity (PI) insurance are both commercial insurance policies designed to cover compensation claims. However, the types of compensation claims that they can cover can be very different.

What Is Public Liability (PL) Insurance?

Public Liability Insurance covers you against material damage (i.e product, equipment, property, etc) and injury claims that result from negligence on behalf of you or one of your employees. If a third-party experiences property damage, bodily injury, Public Liability Insurance can help you cover the cost of the claim as well as court and legal fees – dependent upon the terms of your policy. As a result of this, public liability insurance can often be referred to as third party insurance.

Examples Of When You Need Public Liability Insurance

  • A customer trips on loose flooring in a shop and suffers an injury.
  • As a consultant you work in a clients premises and spill coffee on their computer equipment causing damage.

What Is Professional Indemnity (PI) Insurance?

Professional Indemnity Insurance covers your business against claims for errors, omissions, professional neglect for both the principals and their employees, libel and slander, malicious falsehood, passing off, copyright infringement, breach of confidentiality, and negligent statements or actions. Professional Indemnity insurance helps you cover legal fees, the cost of the claim and can also help cover compensation that you may owe due to damages.

Examples Of When You Need Professional Indemnity Insurance

  • A company sues you because they feel your software doesn’t perform as advertised.
  • An architect makes a mistake when designing a building that requires costly rebuilding works to be carried out

Do I Need Professional Indemnity and Public Liability Insurance?

Public Liability Insurance is especially important for businesses that work with physical products or directly interact with the public, such as tradesman and manufacturing companies. Many businesses may not work with you unless you can show them proof of Public Liability Insurance, making it a valuable asset for most businesses.

Professional Indemnity Insurance is essential for businesses such as professional consultants, architects, lawyers, accountants, digital agencies, software developers, business analysts, and marketing companies. However, tradesman may wish to consider obtaining Professional Indemnity Insurance to cover accidental loss of sensitive documentation, information leaks and the risk of giving poor advice.

How Can We Help?

We can offer both Public Liability & Professional Indemnity Insurance. We deal directly with the UK’s leading insurers to ensure that we offer the lowest premiums available. To obtain your public liability quote or professional indemnity quote, you may visit our website or contact a member of our team who are always on hand to offer expert, friendly advice.