For most, there is a lack of understanding of the difference between Professional Indemnity and Public Liability insurance. Both of these insurance types are quite similar in the sense that they provide cover against the negligence of you or your business.
However, the difference arises from the type of negligence committed by you or your business. Here we will discuss more in detail:
1. The Cover Provided by Professional Indemnity Insurance
If your client is unhappy with your work, then professional indemnity will provide you with cover. It is an essential insurance type for anyone who provides professional services like advice, design, or special task assistance.
If a client claims that you committed negligence or provided poor services, then the professional indemnity insurance will protect you by covering considerable legal costs in your defense regardless of the validity of a claim.
If the decision goes against you, then the insurer will provide cover to compensate the damage based on the policy’s level of cover. Apart from negligence, a professional indemnity insurance plan can also cover: –
- Defamation claims
- Copyright and intellectual property infringements
- Loss of data or sensitive documents
- Dishonesty of employees or partners
2. The Cover Provided by Public Liability Insurance
If a third party claims injuries or property damages caused by you or your business, then the public liability insurance policy comes into play.
You can be liable for it if someone comes to your business premises or you go out and an accident happens. For example, if a person comes to your office and trips over a wire. In this accident, he breaks his wrist and an expensive wristwatch. In this case, he can file a claim for injury and/or replacing/repairing the watch.
Under this insurance plan, you will be covered for legal costs, damage costs, and other compensations you are liable for.
Which Plan is the Best? Professional Indemnity or Public Liability?
From the above discussion, you have gotten a better idea of which insurance plan is suitable for you. It is highly recommended to choose both plans but in order to better understand your needs give Prima Insurance a call to ensure that you are fully covered in the event of anything happening.