What is the difference between public liability and professional indemnity insurance?


Public liability insurance differs from professional indemnity insurance in that it protects business owners from general liability, whereas professional indemnity insurance provides coverage to certain occupations against liability arising out of professional malpractice or negligence.

When Buy Public Liability Insurance

Public liability insurance is a much-needed protection for business owners who are exposed to a high risk of being held liable for property damage or bodily injury incurred by people while being on the business's premises or as a result of the company's operations.

Since public liability claims against business owners are very common, you should seriously consider getting adequate insurance to protect you against such claims. Think about all the liability risks you are exposed to and all the situations in which you might be held liable by your clients/visitors, and you will see the need to buy a public liability policy. Not having adequate liability insurance might result in your company going out of business.

The public liability policy a business owner will most likely be offered is called Commercial General Liability (CGL) insurance and is designed to protect companies from the potential negative consequences of having to pay damages in public liability claims.

Professional Indemnity Insurance

Unlike public liability insurance, professional indemnity insurance only covers liabilities arising out of one's professional malpractice or negligence.

Certain set of high-risk professions whose competence people's health, life or finances are directly dependent on, are eligible for professional indemnity insurance. These include physicians, architects, engineers, different types of agents, brokers and consultants, lawyers.

Liability claims against the above-mentioned professions are indeed very common, which is why two major types of liability policies have been specifically designed to financially protect the respective professionals. Healthcare professionals can buy the so-called Physicians professional liability insurance which protects them against medical malpractice liability.

Similarly, architects, consultants, brokers, agents, engineers, attorneys can purchase the Errors and Omissions coverage which will protect them from professional liability which might occur as a result of errors and omissions the above-mentioned specialists might have made.

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