While public liability and professional indemnity insurance serve different purposes, many companies that offer almost any type of service find that both types of coverage are essential to minimize risk of business disruption from legal claims. Along with a full package of commercial business insurance, often including property coverage, workers compensation, fire insurance, fleet vehicle policies and more, public liability and professional indemnity insurance provide a business insurance coverage against specific types of loss or claims.

 

Claims Arising From Professional Service or Advice

 

Professional indemnity insurance, which may be similar to errors and omissions (E&O) or malpractice insurance in certain fields, is designed to protect against claims arising out of negligent or erroneous professional advice or services. Whether the professional is an accountant, mortgage or real estate broker, insurance agent, architect, engineer, or product designer, mistakes that cause financial harm to someone else can bring substantial legal claims. Costs of defending the claim are generally covered by the professional indemnity insurance, up to the limit of the policy.

 

Claims Arising From Injury to the Public

 

Public liability policies are similar to general liability insurance that many companies use to protect against risk of physical or bodily damage. Injuries or damages to employees or others working with the company are not covered, though, nor are physical risks to property or buildings like fire, flood, or earthquake, for example, so premiums tend to be more affordable for public liability insurance. Both public liability and professional indemnity insurance are important parts of the insurance coverage equation for many businesses. Consult with an insurance professional to tailor a suite of insurance products that best suit your company’s unique needs.