Public Liability Or Professional Indemnity Insurance?

professionals sitting at a desk discussing insurance policies

If you’ve ever wondered about the difference between public liability and professional indemnity insurance, rest assured that you’re not the only one. While both may seem outwardly similar, there are unique differences between the two. Read on as our experts explore how they differ and learn which insurance policy is right for you.

What Is Public Liability Insurance?

Public liability insurance is a type of policy intended to protect businesses from claims made by members of the public. These claims could relate to anything from injuries to property damage caused by a business’s activities. If a claim is made, a public liability insurance policy will cover the cost of legal fees, compensation, and other expenses that may be incurred through the incident.

A public liability policy can be particularly important for businesses that interact with members of the public on a regular basis. That includes businesses such as retailers and restaurants.

What Is Professional Indemnity Insurance?

Professional indemnity insurance, often known simply as PI insurance, protects businesses from claims made by clients who have suffered financial loss or damage due to the business’s services. Potential causes for a claim could include negligence, breach of duty, or errors in professional advice that have negatively impacted the client. A PI insurance policy will cover the costs of legal fees resulting from these errors, as well as compensation and any other expenses.

With this in mind, professional indemnity cover is important for businesses that provide professional advice services. It’s also worth noting that, while it’s not necessarily a legal requirement, it may be a contractual requirement, as well as, regulatory bodies possibly requiring their members to have cover as part of their commercial insurance. Potential professions this could cover includes lawyers, engineers, consultants, and many more. Essentially, any business that is regarded as ‘professional’.

The Difference Between Public Liability And Professional Indemnity Insurance

So, the main difference between public liability and professional indemnity insurance is the type of risk they cover. Public liability insurance covers the risk of injury or damage to property caused by a business’s activities, while PI insurance covers the risk of financial loss or reputational damage caused by a business’s services.

If you want to ensure your own business has the strongest level of protection, it can be a good idea to take out both public liability and professional indemnity insurance. Without suitable cover, your business may have to deal with the full financial burden of any legal proceedings and compensation payments. Having both types of insurance, however, gives you peace of mind that you’re covered if you do face a claim.

Higos For Your Public Liability Insurance And Professional Indemnity Insurance Needs

At Higos Bath, we have over 56 years of combined experience in the insurance industry. Our team will take the time to talk through the unique nature of your business and will ensure you find the best and most appropriate insurance policy for your needs.

If you’d like to speak to a chartered insurance broker to help protect your business, don’t hesitate to get in touch. Whether it’s public liability insurance, professional indemnity insurance, or both, we’re always happy to answer any questions you may have and find the right policy. Whatever your needs – it has to be Higos.

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Give us a call on 01454 285255 if you have any questions or click the 'request a callback' button.