Professional Liability Insurance Vs. Public Liability Insurance
Two of the most important policies for a business are professional liability insurance and public liability insurance. Both are designed to provide varying forms of financial protection for your business and, here, small business insurance provider, Towergate, explains the key differences between the two policies.
Professional Liability Insurance What is professional liability insurance? Any advice that you offer to a client in a professional capacity is covered under professional liability insurance. Should your client claim that you have failed to deliver your services to a professional standard, this policy will protect you from the financial repercussions of this. While professional liability insurance is very important for businesses that sell skills or knowledge, it is not relevant to all trades. Certain professions are required to take out this cover, such as insurers, architects and accountants, as well as those that write for trade journals or magazines, to protect against allegations of libel or slander.
Professional liability insurance – What level of cover do I need? You can take out professional liability insurance on a yearly basis, or alternatively, arrange it to cover a specific contract period. To ensure that your business receives cover that is tailored to their specific requirements, it is often recommended that your policy is arranged with an insurance specialist.
Public Liability Insurance What is public liability insurance Should your business be found to be at fault for the injury to a member of the public or damage to their property, public liability insurance provides financial protection from the repercussions of being found accountable. This protection includes any legal fees incurred as well as the cost of compensation awarded to the claimant. If your business comes into contact with members of the public, it is essential that you have this type of cover, as the consequences of a claim without it can be devastating. Although it is not a legal requirement, you may find that the absence of this insurance also results in losing business contracts and clients.
Public Liability Insurance – What level of cover do I need? You can arrange cover for anywhere between 1million and 20million and your insurance premiums will differ depending on the level of cover you take out and the nature of your business. By arranging a small business insurance package which includes employer’s and public liability, it may be possible to lower your premiums. Being a member of a professional body could also result in a discounted rate from your insurance provider.
Betty Friggots has experience writing around the topic of business insurance and finance.
