3 min read
Public Liability vs Professional Indemnity: What's the Difference?
They sound similar and often get confused, but public liability and professional indemnity cover two very different risks. Many businesses need both. Here's how to tell them apart.
Public liability - physical harm
Public liability covers physical events: injury to a third party or damage to their property caused by your business. Think a customer injured on your premises, or your work damaging a client's building. It's about tangible, physical loss.
Professional indemnity - advice and errors
Professional indemnity covers financial loss caused by your advice, design or professional services - a mistake, an omission, or negligent advice that costs a client money. There's no physical damage; the loss is financial and flows from your expertise.
Why many businesses need both
If your work involves both physical activity and professional advice - a builder who also designs, an engineer on site, a consultant who visits client premises - you can be exposed on both fronts. Carrying both covers closes the gap so a claim doesn't fall between two policies.