In many cases, if you work as a contractor, Public Liability and Professional Indemnity Insurance are a requirement from companies and clients. It is important to understand the difference between the two to identify which insurance is needed for your business.
What is Business Liability Insurance?
Business Liability Insurance covers your business when it’s found to be liable, and you need to pay compensation for personal injury to a third party or damage to their property and equipment. Keep in mind that it is a good idea to have this cover at all times, not just when you are on worksites. It is due to it providing security for your business when incidents happen relating to your business’s products, and you are found liable.
As an example, if you are an electrician or own a business that has several electricians working for you, and one of them provided a professional service to one of the clients by installing a meter box, and it caught on fire a few months later, your business can face charges for the damage of their property or any potential injuries. If you have Business Liability Insurance, you can feel confident that in such instances your business will be protected and the insurer will cover the costs for damages to property and injuries to third parties according to your policy. At All Trades Cover, our insurance brokers can answer your questions about Business Liability Insurance and advise you if it’s the right cover for your business.
What is Professional Indemnity Insurance?
If you provide professional advice as a part of your job, Professional Indemnity Insurance might be exactly what you need. It ensures that your business is protected against claims from third parties when they suffer financial loss that is caused by your professional advice or negligence. Professional Indemnity Insurance covers the costs you face due to the claim, as well as legal bills you acquire during the process.
For professionals who don’t usually provide advice as a part of their job, Errors and Omissions Insurance might be more suitable. It is a great way to protect yourself and your business in case your advice leads to an incident because even if it is made in passing, you might still be liable for some of the costs. If you are uncertain whether Professional Indemnity or Errors and Omissions Insurance is more suitable for you, speak to one of our experts at All Trades cover and they can lead you in the right direction.
What’s the difference between Public Liability and Professional Indemnity?
Getting the right cover for your business is important, so it is good to know the difference between Public Liability and Professional Indemnity Insurance as they cover different types of risks. Public Liability covers you in cases where your business causes damage to property or injury to third parties, and you are liable for the related costs. Professional Indemnity, on the other hand, protects you when an incident happens due to the professional recommendation to your clients.
A lot of businesses benefit from having both covers. To find out which insurance is right for you, contact all Trades Cover on 1300 826 850 or if you know what insurance you can fill out an online form and get a quote now.