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Differences Between Public Liability and Professional Indemnity Insurance

Among the many types of insurance coverage that are essential for many businesses are public liability and professional indemnity insurance. Designed for two separate purposes that many businesses have need for, the two varieties of insurance are often included in a complete commercial insurance set along with policies covering employment risks, along with workers compensation and other policies such as fleet vehicle coverage, fire, property, and other specific types of coverage.

 

Different Policies for Complete Coverage

 

Public liability insurance, on the one hand, is designed to insure against risks of bodily injury or damage caused when a customer or other member of the public suffers injury on a company’s property or caused by a company employee. Professional indemnity insurance, on the other hand, is made to cover the costs of claims against the company arising out of financial damage suffered as a result of mistakes made in providing professional services. Often called errors and omissions (E&O) insurance, or malpractice insurance in certain fields like law and medicine, professional liability insurance will pay the costs of defending legal claims arising out of flawed professional services, as well as any financial damages that the aggrieved party can prove resulted from the incident.

 

Both public liability and professional indemnity insurance have important roles in the insurance protection package that a company may need. Since specific types of policies cover unique types of risks, it is worth the time to meet with insurance professionals and obtain personal guidance on the variety of coverage required.