Most people get confused while taking any decision in relation to the type of insurance policies. Both professional indemnity insurance and public liability insurance are linked with each other since these are designed against negligence actions.
However, one thing that should be pointed out is that both of these insurances cover entirely different things. Public liability insurance protects the business or the owner of the business against various types of accidents or injuries to the third-party. This happens when the third-party gets injured within the premises of the owner’s shop or building/home etc. Thus, the injured individual is eligible to make a claim against the owner or against his company.
On the other hand, Professional indemnity insurance protects the professionals such as lawyers, doctors etc. from the costs that must be paid to the person who has raised the point of claim against such professionals. This insurance will in turn lend a hand by covering such issues by refunding the money to the affected person who might be neglected by the professional. In case of doctors, the negligence can be related to operational factors or medicinal factors which might have affected the health of the person in any way and the same is the case for lawyers or any other type of profession.
Public liability insurance should be mandatory for all types of people who are indulged in business or any other field that is linked directly or indirectly to business. Some people think that such laws are a burden for them but they should know one thing, that these all are provided to them simply to maintain the continuity in business without facing any trouble related to claims. This actually protects the customer against any type of injury or accident that occurs suddenly without any indication.
Such policies cover up the wide range of costs. The insurance company basically asks few questions such as:
– What type of business an individual has?
– Is the work is related to working above the second floor?
– Have you had any type of recent claims?
– How many people are working under your company/business?
– Are your employees certified to do the work i.e. the legal permission?
– What is the financial level of the cover required?
Once the company gets to know the specific answers for such questions then you will be selected as a part of public liability insurance.
By John Benson