Professional indemnity and public liability insurance are two types of insurance that are often confused. While they may share some similarities, they also have key differences. This can make it difficult to understand what you need for your business. In this article, we’ll look at the difference between professional indemnity and public liability insurance so that you can figure out which one will be best for your needs.

What’s The Difference?

The difference between professional indemnity and public liability insurance is that you need one and your business needs the other.

Professional Indemnity Insurance (PII) is for individuals who provide a professional service and offer advice on how to use it, such as doctors, therapists, or lawyers. PII protects these professionals against claims of negligence in their work, so if a patient or client makes a claim against them for any kind of error or omission on their part while providing their services – for example not diagnosing correctly or failing to inform an individual about possible complications from a procedure – then PII will cover costs associated with defending any legal action against them brought by the patient/client involved.

Public Liability Insurance (PLI), however, provides protection for businesses trading in goods or services which could result in others being injured as a result of things like accidents at work sites or premises owned by the business concerned. It also covers accidental damage caused to property belonging to others during normal operations, such as third-party damage caused by machinery used by your company during manufacture etc.

Professional Indemnity Insurance Explained

Professional Indemnity Insurance (PI) is a type of business insurance that covers you if you’re held liable for something that goes wrong. It can also cover the cost of someone else making a legal claim against your business, like:

  • A customer suing you after they fall on your premises and break their leg
  • An employee suing you because they were fired without good reason
  • A supplier suing you because they delivered faulty goods to the business

In essence, Professional Indemnity Insurance protects any claims that don’t fall under Public Liability Insurance (more about this below). If someone sues your business for something outside of public liability, then PI may be necessary.

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Why do I need professional indemnity?

Professional indemnity insurance is designed to protect you from claims of negligence, professional misconduct, and breach of contract.

It is also designed to protect you against claims for copyright infringement, defamation and other matters not specifically listed here.

Public Liability Insurance Explained

Public Liability Insurance protects businesses against claims made against them by members of the public. A common reason for a claim is an accident that takes place on the premises, such as if a customer slips and falls in your store. Other scenarios where public liability insurance could be applicable include:

  • Accidents occurring on private property
  • Accidents occurring at work
  • Defective products

Why do I need public liability?

Public liability insurance is a legal requirement to cover you if you are sued for negligence. If you have public liability insurance, it means that if someone claims that they or their property have been damaged by your actions, and they decide to take legal action, then their claim will be covered by your public liability policy.

This type of policy covers all damages caused by negligence on the part of the insured party. This can include personal injury; damage to third parties’ property; and property damage caused during an accident which was not your fault.

Locksmith Insurance Cover for Illness or Injury

There are several differences between professional indemnity and public liability insurance, but they are not necessarily interchangeable. Both are useful for tradies and businesses

Professional indemnity insurance is different from public liability insurance in that it covers losses incurred by the insured as a result of their work. For example, if you are an electrician and someone gets injured while they are at your premises, professional indemnity insurance would cover the costs related to their medical treatment. On the other hand, public liability insurance provides protection against third-party claims arising out of your business or company’s operations or activities.

It’s worth noting that there are some similarities between both types of insurance policies:

  • Both can help protect you from paying out huge sums when things go wrong – whether it be through an accident or negligence on your part.
  • You’re issued with a policy number during the application process so you can easily access any claims made against you; and
  • It usually takes about two weeks for a decision on whether your application has been successful (and depending on how busy each provider is).

So, as you can see, there are a lot of differences between professional indemnity and public liability insurance. While they both play an important role in keeping you protected from claims against your business, when it comes to comparing them side-by-side it’s important to know what makes each policy unique. If you’re looking for more information about these policies or want help deciding which one might work best with your business needs, contact us today.