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

General types of insurance including public liability and professional indemnity insurance may be included in a DJ insurance or hotel insurance policy for example. The type of negligence claimed against your business is key to understanding the difference between public liability and professional indemnity insurance.

When you run your own business, having the right insurance is entirely your responsibility. There are many different policies to consider and separating them and working out which one you need can be difficult.

Whether you’re a builder or a DJ the right insurance matters if you want to protect your business and your assets. Insurance such as public liability insurance and professional indemnity insurance are two types of premium you’ll regularly hear about. Knowing the difference is important so you can ensure you have the right policy for your needs.

Professional Indemnity Insurance

Professional indemnity insurance provides protection against claims by clients who are unhappy with the work provided. It is considered essential for people who provide a specialist service such as design or consultancy.

If a client alleges your work includes mistakes or you have been negligent and this results in financial loss, a professional indemnity insurance policy will cover the cost of your defence. This is the case if their claim is valid or not. If you are found to be liable then the insurance will pay out, up to the level of cover you have chosen.

Professional indemnity insurance is essential where personal opinion can come into effect.

Public Liability Insurance

Public liability insurance provides cover against third-party claims for property damage or injury. This is essential where you come regularly into contact with the public, especially if you have heavy equipment involved in your work. DJ insurance, for example, includes public liability insurance to guarantee protection if anything does happen to a member of the public due to your equipment or actions.

Claims could cover the cost of damage to a property or compensating an individual who is injured or has suffered a loss. Public liability insurance will pay for the defence and also any compensation that may be awarded as a result of the claim.

Protecting your Business and the Public with Public Liability and Professional Indemnity Insurance

The insurance you need is highly dependent on your individual business and both these types of properties should be considered carefully. The professional image of your business is at risk if you don’t have the right insurance.