Public Liability Insurance vs. Professional Indemnity Insurance

Share
Imagine your business is now booming, with clients and projects flowing in. However, as things start to grow, so do the risks. Suppose, for instance, something goes wrong—would you be protected against the potential damages? That’s where public liability and professional indemnity insurance come in to help.
Having these insurances in place means you can focus on growth, knowing your business is protected from all those accidents and errors that can so easily take us by surprise.
You may have heard about public liability and professional indemnity coverage but perhaps you are wondering what the difference is between the two.
In this article we’ll break down the differences so you understand which one fits your needs.
What is Public Liability (PL) Insurance?
Public Liability Insurance is necessary if your business interacts with the public or clients on-site or off-site. It protects your company against adverse claims that could be raised against it. In case of an accidental injury to another person or damage to their property because of your business activities, this insurance would pay for the costs of the claim and any compensation associated with it.
Let us discuss the major areas of the coverage this insurance provides and consider specific cases to grasp its concept more effectively.
Critical Areas of Protection:
- Personal injury claims from customers, visitors, or passers-by
- Damage to third-party property
- Legal defence costs and compensation payments
- Medical expenses resulting from covered incidents
Real-World Claim Examples
- A delivery person trips over improperly stored items at your business premises
- Paint spills onto a client's expensive carpet
- A customer gets hurt in your shop, or their vehicle gets stolen from your car park
This insurance proves vital for businesses with physical premises or those conducting activities in public spaces. Public Liability Insurance creates a financial safety net for salons against unexpected accidents and subsequent legal claims.
Standard coverage amounts vary depending on the specific industries. This is due to different requirements and higher levels of protection based on their risk profiles and contractual obligations.
What is Professional Indemnity (PI) Insurance?
Suppose you made a mistake or someone thought you gave them the wrong information, leading to monetary loss or harm.
Professional Indemnity Insurance protects you financially if a customer or third party claims a loss due to your professional work—whether it was an error, bad advice, or something you forgot to do. For instance, it addresses circumstances such as:
Critical Areas of Protection:
- Accidental copyright violations, such as utilising someone else's image in an advertisement without permission
- Defamation or libel is defined as making false claims about a rival without malice
- Accidental disclosure of private customer information
- Loss of critical documents or data
- Loss of money or goods under your control
Simply put, this insurance can provide security when you provide customer services.
How Professional Indemnity insurance protects you
- Covers you if you make a mistake or if someone believes your advice caused them financial loss or injury
- Pays for legal defence costs, even if you're not at fault
- Covers any compensation you may need to pay if a claim is filed against the business
- Shields you from unexpected risks, ensuring you don't bear all the financial burden alone

Overview of the Differences Between Public Liability and Professional Indemnity Insurance
Both public liability and professional indemnity insurance protect businesses from different problems. Here’s a simple breakdown to show when each type of coverage is needed and what they cover!
Aspect | Public Liability Insurance | Professional Indemnity Insurance |
Coverage Type | Covers third-party injury or property damage | Covers mistakes or errors in the provided services |
Who It Protects | Businesses against claims from the public, clients, or customers | Businesses offering advice or services to clients |
Common Claims | Injuries on-premises or damage to client property | Defective advice or faulty services provided |
Examples | A customer is injured in a shop, or a contractor damages property. | An architect making a design error or a consultant offering poor advice. |
While both insurance types are necessary in different scenarios, many businesses, especially those in service industries, may need both coverages to ensure they are fully protected from public and professional risks.
What is Combined Business Insurance?
Combined Business Insurance is a practical method of safeguarding your organisation by combining critical coverage types into a single policy. By combining PL and PI Insurance, you can protect your company from accidents and professional blunders.
Westminster Insurance offers a combined business insurance package that come with comprehensive coverage, including both Professional Indemnity, Public Liability & Medical Malpractice Insurance, plus extras available such as employers liability and workplace contents cover.
Medical malpractice insurance protects against carelessness during client care, including circumstances when advice or treatment causes harm, mental suffering, or even death. This might be anything as simple as delivering advice that unintentionally harms a client’s emotional health.
Many other insurance providers only only offer one type of protection per policy, meaning you need several policies, with several providers – making protecting your business an extra stress that you don’t need.
How to Choose the Right Coverage for Your Business Needs
You need to ensure you select the right insurance coverage for your business so that you are sufficiently covered. What insurance you need, however, depends on your nature of business, the danger likely to be involved, and your organisation’s size. Here are key variables to consider in selecting the right coverage:
- Decide if your business involves in-person customer interactions or provides professional services.
- PL insurance helps you if a natural hazard, like a fire or flood, unexpectedly affects someone or something tied to your business. PI is there for you if there's a mistake or oversight in your services, like an error in your advice causing problems for a client.
- Other policies, such as employer's liability insurance, may be required if you have employees and need to cover workplace incidents. Make sure you meet all legal obligations!
- A combined business insurance policy provides excellent value for businesses that need protection. It is wise to provide comprehensive, all-around coverage against several risks. This unified policy will give enterprises total peace of mind since they are now protected at all costs without having to put up with multiple plans and costs to manage.
You can pick the right insurance by assessing your various business risks. This way, you stay fully protected from all angles.
Conclusion
For full business protection, it is important to consider taking both Public Liability and Professional Indemnity Insurance. These will protect your business from unmet liabilities, especially keeping your industry’s risk-related facets under control.
Westminster Insurance’s combined business insurance acts as a combination of these two covers. It bundles all covers to create a simple, strong cover for your operations.
In Westminster, you can include several practices into one policy— for no extra cost. These options add the felxibility you need for diverse industries such as aesthetics, hair and beauty, coaching and counselling, physical health and fitness, and management and consultancy. They ensure your business is well-set for confidence and sustainable growth using adaptable policies based on industry experience and true customer service.
Contact Westminster Insurance to discover offerings & seek the right cover for your business, and obtain a free quote. With a vision of transparency and appropriately tailored solutions, you’ll be assured of the best insurance partner you can rely on.

Instant Insurance Quote
Share
Latest Blogs
What is Public Liability Insurance? An Overview For Small Businesses
As an entrepreneur with a small business, you are already given numerous things to think about. From compensating your employees to delivering your services, the list is limitless. But have you considered the implications of a third-party accident for your business? Explore Public Liability insurance in this article to understand the risks and how to protect yourself.
05th December, 2024
Public Liability Insurance vs. Professional Indemnity Insurance
You may have heard about public liability and professional indemnity coverage but perhaps you are wondering what the difference is between the two. In this article we’ll break down the differences so you understand which one fits your needs.
04th December, 2024
Business Insurance Basics: Understanding the Essentials
Here, we’ll cover the basics of insurance, including how policies work, what terms to know, and the different types of policies available. Understanding these aspects will help you make informed decisions and ensure that you’re protected, whatever the future may hold.
03rd December, 2024