Is professional indemnity insurance the same as professional and public liability?
Many people confuse professional indemnity with professional liability, but they are actually the same thing. Professional liability is simply another term for professional indemnity. Public liability, on the other hand, is a completely different type of policy. Here’s how they differ:
What professional indemnity covers
Professional indemnity (often called professional liability) protects you if your advice, design, or service causes a client financial loss. For example, accountants, consultants, architects, engineers, IT firms, and marketing agencies commonly need this cover. If a client claims you made a mistake, missed something, or gave poor advice, this policy can help defend you and pay for valid damages and costs.
In the UK, professional indemnity insurance is typically written on a claims-made basis. If a policy is on a claims-made basis, the policy covers claims made during the policy’s period only. After this, you will need a tail cover or an extended reporting period. Without a tail cover, a claim made in June 2025 for an accident that happened in January 2023 will not be covered. This is because professional indemnity claims can arise years after an incident happens.
While not a legal requirement, some companies require businesses to have a minimum amount of professional indemnity insurance before agreeing to work with them. This is mainly because of financial exposure, legal risk, contractual obligations, and reputation damage reasons. It is highly recommended for businesses to have, and mandatory for regulated professions such as solicitors, architects, surveyors, and most financial services.
For more information on professional indemnity insurance, click HERE to be redirected to the PI product page. If you are wondering whether your business is one of the industries that is legally obliged to obtain professional indemnity insurance, please click HERE to read the Government’s official guidelines.
What public liability covers
Public liability protects you if a member of the public suffers injury or property damage because of your business activities. A customer trips in your shop, a visitor’s phone is damaged during a site visit, or maybe a contractor cracks a client’s tiles.
In the UK, public liability is usually written on a losses occurring basis, which means the policy that was active when the incident happened must respond. Meaning that if a claim is made today for something that happened 3 years ago, the policy you had at the time of that incident must respond.
For more information on public liability insurance, click HERE to be redirected to the product page.
Professional liability vs public liability, what are the main differences?
- Professional indemnity: covers financial loss from your advice or service, usually on a claims-made basis policy.
- Public liability: covers injury or property damage to third parties, usually on an occurrence basis policy.
Neither is a legal requirement, but both are recommended, and professional indemnity is a mandatory requirement for certain sectors.
Which policy do you need for your business?
If you sell advice or services, you likely need professional indemnity. If you interact with the public, work on client sites, or run premises with visitors, you likely need public liability. Many businesses do both.
A construction company, for example, advises on specifications and also sends teams to client sites. That mix of exposures often calls for both policies.
If you’re unsure what insurance your business may need, we are happy to help you make an informed decision. Contact us today at 01730 20265500 or email hello@robison.co.uk and a broker will be happy to provide you with advice to make your decision on the best insurance policy’s for your specific needs.
Claims examples professional liability vs public liability
Professional Indemnity
Incorrect advice leading to financial loss for a client = A client faced financial losses due to the incomplete probate advice from a solicitor. They made a claim against the solicitor, and the solicitor’s professional indemnity insurance covered the cost of the claim.
A data breach of client’s financial information = An accounting firm accidentally emailed a client’s sensitive financial data to the wrong person, prompting a PI claim to cover potential liabilities. The insurer provided legal support and settlement costs.
Public & products liability
Customer injury = A customer slips on the wet floor of a café, causing them to break their wrist. The cafe’s public liability insurance covers the claim to provide settlement for the customer.
Damage to a client’s property = During a house renovation, one of the contractors accidentally damages a wall. Their public liability insurance pays out to cover the repair costs of the wall.
Why might it be beneficial for you to have both of these policies for your business?
Businesses often choose to have both professional indemnity and public liability insurance policies to protect themselves against potential financial losses. Having both policies for your business allows you the peace of mind that you deserve. Owning a business is stressful enough without worrying about potential claims that could arise. Having both policies allows you to focus your efforts on business operations without constant worry of the “what if”.
How can Robison & Co help you?
You deserve to work with an insurance broker who both understands your business sector and takes the time to understand your individual business situation. At Robison & Co., we do both. You aren’t a number on a spreadsheet with industry standard needs; you are an individual with a unique portfolio that deserves time and attention.
Our brokers provide you with the care you deserve by talking to you directly, no chatbots or AI helpers, taking your portfolio to our insurer market, and pushing for the best cover & premium. Not only will they secure you the most appropriate policy and price they can, they will explain it all so you have a full understanding of the cover and any exclusions the policy provides you with.
We also understand the stress of having to go through the claims process. Which is why if you are ever in the unfortunate position of having to make a claim, once you have filed it with your insurer using their claims helpline listed on your policy document, your individual broker will walk you through and do all the chasing for you. Peace of mind is our top priority for you, and we promise that with Robison & Co., you will have it.
Interested in a no-obligation quote today? Or looking for some advice on the policies you need?
Contact Robison & Co today to discuss professional indemnity and public liability insurance for your business: