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What is the difference between Professional Indemnity Insurance and Public Liability insurance?

PI vs PL Insurance

Professional indemnity insurance and public liability insurance are different types of business insurance that cover compensation claims.

Professional indemnity insurance explained

Simply put, professional indemnity insurance cover claims made by clients for professional negligence or mistakes, whereas public liability insurance cover claims made by members of the public for injury or damage.


How does public liability insurance work?

Public liability insurance covers claims of injury or property damage by a member of the general public against your business. This could include customers, clients, suppliers or passers-by.

Public liability insurance can also cover the cost of your legal defence, compensation payments, medical costs and loss of income as a result of the claim.

Click here for further information about Public Liability Insurance.


How does professional indemnity insurance work?

Professional indemnity insurance will cover claims made by a client for professional negligence or mistakes made in the work you have done for them.

Claims can be made due to perceived poor business advice, professional errors, defamation or libel, and sub-standard work.

Professional indemnity insurance can cover the cost of legal defence, compensation payments, any additional costs for rectifying an issue and loss of income as a result of the claim.

The key difference between public liability and professional indemnity is that public liability covers for risks of injury or damage, whereas professional indemnity is focused on cover for professional errors and negligence causing financial loss.

Examples of causes of professional indemnity claims include: a creative design agency misprinting an advert for a client containing incorrect contact details so the client misses out on sales enquiries, or a recruitment business accidentally forwarding on confidential client information, or a business management consultant offering a client advice that causes their client to suffer a financial loss.

Click here for further information about Professional Indemnity Insurance.


If you would like a quote for Professional Indemnity Insurance or Public Liability Insurance, please call 0333 321 1403

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