What is the difference between public liability and professional indemnity insurance?
The difference between public liability and professional indemnity insurance is that public liability is tailored for claims by members of the public for injury, illness or damage while professional indemnity covers claims by clients for professional mistakes or negligence.
Is public liability the same as professional indemnity?
The short answer could be designed as follows: professional indemnity insurance cover claims made by clients for professional negligence or mistakes, whereas public liability insurance covers claims made by members of the public for injury or damage.
What is not covered by professional indemnity insurance?
Professional indemnity insurance also rarely covers things like bodily injury, fines and penalties or financial losses due to war or pollution and radioactive contamination. There is a financial limit that a policy will pay out in the event of a successful claim, this is called the Limit of Indemnity.
Is professional indemnity the same as civil liability?
In terms of professional indemnity insurance, a 'civil liability' wording is the widest available form of cover and wider than the usual 'negligence' or 'errors and omissions' wordings. This wording will cover situations where a policyholder may be held liable for a loss, without having being found to be negligent.
What does Public Liability Insurance Cover? Public liability protection covers injuries and damage claims brought against your business by a third party, whether caused at your own workplace, a customer's workplace or elsewhere. Protection against these claims is at the very heart of this type of insurance.
The Difference Between Professional Indemnity and Public Liability
What does professional indemnity cover?
What it covers. Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for: personal injuries. loss of or damage to property.
Professional indemnity insurance can cover compensation payments and legal fees if a business is sued by their client for a mistake they've made in their work. The compensation payment will usually take into account the financial loss that the client has suffered.
Public liability insurance can cover compensation claims if you're sued by a member of the public for injury or damage, while professional indemnity insurance can cover compensation claims if you're sued by a client for a mistake that you make in your work.
Do I need public liability and professional indemnity insurance?
While neither is a legal obligation, having public liability and/or professional indemnity insurance can offer the peace of mind that your business is covered if you do face a claim. Without adequate cover, you could face the full financial brunt of legal proceedings and compensation payments.
Do I really need professional indemnity insurance?
Professional indemnity insurance should be considered by any self-employed worker who is providing design, advice or specifications during the course of their role. While it isn't a contractual requirement in every instance, most clients will specify that it's required in their contracts before working with you.
Professional indemnity insurance premiums can start from £332 annually for a limit of £1 million. However your insurance costs will be dependant upon a number of different rating factors. It is not unusual for annual premiums to be +£10,000 if you opperate with a higher degree of risk.
Professional Indemnity commonly provides cover for professionals in various industries, including legal professionals, medical practitioners, engineers and consultants.
Does professional indemnity cover civil liability?
The professional indemnity insurance policy is designed to protect the policyholder against claims made against them arising from the provision of a professional service, this applies to both civil liability and negligence based policies.
It offers protection for the buyer against the costs of fixing many of the problems that might be revealed. For example, your conveyancer may discover that the property seller can't provide key planning permission documentation relating to an extension they had built.
Indemnity insurance cost will range from as little as £20 to as much as £500, or even more for a non-standard policy. Insurance for a lack of planning permission and building regulations will likely cost between £200 and £500, while insurance against chancel repairs liability costs between £50 and £200.
Does professional indemnity insurance cover breach of contract?
Standard policies provide cover for claims arising by reason of any negligence, error or omissions (a breach of professional duty), although many policies provide wider cover on a 'Civil Liability' basis to include breach of contract, breach of copyright, breach of confidentiality, libel and slander, loss of documents ...
When should I get professional indemnity insurance?
Here are some reasons why you may need Professional Indemnity Insurance which might help make things clearer: You provide advice and consultancy - Clients can claim compensation if there's a mistake in the advice you've given. You provide an expert service - In case you make a mistake in designs, plans or calculations.
Does public liability insurance cover legal costs?
Does public liability insurance cover legal fees? Your policy will usually cover the cost of legal fees that are associated with defending a claim brought against you.
What is the limit of indemnity in public liability?
The Limit of Indemnity (LOI) is the maximum amount the insurer will pay under a policy during the policy period. Legal costs may be included within the Limit of Indemnity or may be covered as an additional amount, depending on the policy purchased.
Can I get public liability insurance as an individual?
Public liability insurance for individuals is not required by law but you can see that this should be a top priority. Public liability cover is optional but Ashburnham recommend that you consider having it. You may also want to look at getting tools cover to protect your vital equipment from being lost or stolen.
In the case your business is found to be responsible, this insurance will cover the associated costs, including compensation payouts and legal fees such as the cost of defending yourself in court.
As a guideline, think about the value of the contract to you, as well as the complexity of the work involved. Consider the turnover of the business and your pay as a proportion of that turnover. Calculating the right amount isn't an exact science, but getting it right is very important.
