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  • Writer's pictureAmanda Bird

The Difference between Public Liability and Personal Indemnity

No one can predict the future. With such uncertainty, you want to protect yourself and your business. It is why you purchase business insurance. This financial protection will help your company continue operating even after a calamitous event. But before you do anything, you should learn more about this endeavor.

You may already understand how insurance policies work. But you might not know anything about public liability and professional indemnity. A working knowledge about these two will help you prudently determine how much to invest. Take this time to learn more about these two popular categories for business insurance.

What Is Public Liability?

It is natural that you want your business to prosper and eventually, expand. For that to happen, you must protect it from threats. Dangers lie everywhere. Considering that we can never foresee what lies in the future, it is imperative that we protect what we value the most.

These threats can come in the form of third-party claims such as sustained injury in your premises or defamation suits. It may lead to tedious lawsuits that might eventually become financial liabilities. To prevent the (temporary) suspension of operations, you should get public liability.

You might be asking why this type of business insurance. It financially covers your business if anyone gets hurt or sustains property damage due to negligent business activities. That person includes direct client, customers, suppliers, delivery personnel, or passersby. The damage or injury can be the result of business-related activities or products.

Most of public liability policies cover product liabilities. It means that they help cover the cost of defective products that cause grave injury or damage. This business insurance is not limited to merchandise that you sell, but it includes items that you deliver.

You might be wondering if you should invest in this type of insurance. Here are a few tips to determine if this is the right investment:

  1. You should get this if you are a tradespeople or contractor who visits their client’s premises.

  2. You should invest in one if you have an office, showroom or shop.

  3. If you constantly interact with customers or public, you should get one too.

What Is Professional Indemnity?

If you run a public practice, the biggest financial threat would be the misinterpretation of advice given to a client, or omission of a particular task, or being negligent in duty. Professional indemnity protects you from these precarious situations.

In other words, professional indemnity financially covers businesses that offer advice or services in exchange for a fee. This business insurance is also called Professional Liability cover or Error and Omissions cover. If there is any claim filed against you for being negligent or breaching any duty, committing an error, or omitting a task, while performing your job as a professional counselor or service provider, this will cover you.


Life is uncertain. It is only prudent to invest in insurance to provide coverage in times of trouble. This investment will protect you from financial ruin. Thus, your business can continue operation even after the said problem.

If you want to learn more about business insurance, call our team at New Wave Insurance. We will guide you through every step of the way, so that you will get the most suitable policy for your business.

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