If you’re a small business owner, you may have heard about public liability and professional indemnity insurance, but you may not be sure what they are or how they differ. In this blog, we’ll explore the differences between public liability and professional indemnity insurance and help you understand which type of insurance is right for your business.
What is Public Liability Insurance?
Public liability insurance is designed to protect businesses from claims made against them for personal injury or property damage that occurs as a result of their business activities. This type of insurance covers legal fees, compensation payments, and other expenses that may arise from a claim.
What is Professional Indemnity Insurance?
Professional indemnity insurance, on the other hand, is designed to protect businesses from claims made against them for negligence or errors and omissions in the advice or services they provide to clients. This type of insurance covers legal fees, compensation payments, and other expenses that may arise from a claim.
The Differences Between the Two
The main differences between public liability and professional indemnity insurance are the types of risks they cover. Public liability insurance covers claims made against a business for personal injury or property damage, while professional indemnity insurance covers claims made against a business for negligence or errors and omissions in the advice or services they provide to clients.
Types of Businesses That Need Public Liability Insurance
Businesses that interact with the public, such as retail stores, restaurants, and service providers, typically need public liability insurance. This type of insurance can provide coverage for incidents such as slip-and-fall accidents, property damage, and other accidents that may occur as a result of business activities.
Types of Businesses That Need Professional Indemnity Insurance
Businesses that provide advice or services to clients, such as accountants, consultants, and healthcare providers, typically need professional indemnity insurance. This type of insurance can provide coverage for claims made against a business for errors or omissions in the advice or services provided to clients.
Insurance cover for 2 different risks
In conclusion, public liability and professional indemnity insurance are two different types of insurance that cover different risks. Public liability insurance covers claims made against a business for personal injury or property damage, while professional indemnity insurance covers claims made against a business for negligence or errors and omissions in the advice or services they provide to clients. By understanding the differences between the two types of insurance, businesses can ensure they have the right coverage in place to protect themselves from potential claims.
Book a free consultation with Ensure
If you’re looking for an insurance broker in Warragul or Melbourne who can find you the best public liability or professional indemnity policy for your business, call our friendly team at Ensure Risk Solutions today and we’ll arrange a free, no obligation consultation. You can email or call our Warragul office on 03 5625 4455, or if in Melbourne please call 03 9923 2851. With the right insurance coverage, you can rest assured you’re protected from potential risk.