Public Liability and Professional Indemnity Insurance Tips

25th June 2010

Public liability and professional indemnity insurance combines two

types of insurance for a better protection of your business. Public

liability insurance was designed to cover the expenses in case your

employee, customer, guest or simple visitor gets injured in an accident

at your place of business. And professional indemnity insurance is

needed in case you work in a sphere that requires to give professional

advices to your customers. You can be sued in case your advice did not

prove to be helpful.

Both insurances can save you a lot of money, moreover, in some

particular cases they can even save your business. It is a well known

fact that medical bills and legal fees can be so exorbitant that a small

business can hardly recover after paying these huge amount.

Public liability and professional indemnity insurance will help you to

predict unpredictable situation and be protected when you face them. You

never know when an accident can take place in your office, store or

factory, and also you cannot foresee the situations when you advices

will not pan out. That is why it would be unwise to leave your business


It is understandable that in hectic rhythm of everyday business life you

have to handle a lot of things, and perhaps getting an insurance of

this sort does not appear to be that important. Moreover, it can be time

consuming and rather costly – so why bother? But the simple fact that

in the world of today the first reaction of many people is to call their

lawyers, and it is easy to become a victim of the most unpleasant


Public liability and professional indemnity insurance is probably one of

the most expensive insurances, but still the premium you have to pay is

nothing in comparison with compensation amounts in case you are legally

liable for the third party's injures, financial losses or damaged


If you are a doctor with a private practice, a stock broker, an

accountant or a lawyer, it is absolutely necessary for you to have

professional indemnity insurance. Just imagine if you advice a person to

invest in stocks and he/she ens up loosing a lot of money. Or you

misdiagnose disease and prescribe some expensive course which does not

turn out to be effective. Or you prepared someone's taxes and forgot to

file them.

Public liability and professional indemnity insurance will provide

coverage in case you are sued for the money your client lost. At the

same time, if you have your own company and it involves a face to face

contact with any person on your place of business, whether it is your

staff member, client, partner or visitor, this type of combined

insurance will work best.

Visit a few insurance companies and find out the details. Make sure to

read the policy you are offered in order to know how much of the legal

costs and medical expenses will be covered in case an accident takes

place or your professional advise does not give a positive result.