Public & Products Liability Insurance Vs Professional Indemnity Insurance

What Is Public and Products Liability Insurance?

Public and Products Liability Insurance also known as General Liability (GL) protects you and your business against financial loss arising from your legal liability to pay compensation to a third party when they have suffered a personal injury, property damage or an advertising injury.  This injury or damage must be in the direct course of your business or as a result of one of your Products.

What is Professional Indemnity Insurance?

Professional Indemnity Insurance (PI) protects you and your business against financial loss arising from a breach of your professional duty to a third party.

What is an Occurrence v Claims Made?

GL policies are written on an Occurrence basis. The policy that responds to a claim is the one that was in place when the injury or damage occurred. PI policies are written on a claims-made basis. The policy that responds to a claim is the one that is in place when the Insured becomes aware of the claim being made against them (or a circumstance that could give rise to a claim).

Do I need both? Maybe…

General Liability policies will only respond where there has been personal injury, property damage or advertising injury. Professional Indemnity policies do not require personal injury, property damage or advertising injury in order to respond (and will only respond to such claims if it arises from a breach of professional duty).

GL policies generally exclude coverage for claims where advice is provided by the Insured for a fee. PI policies however do not.

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