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? Maybeā€¦
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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Important Notice
Berkley Insurance Company (limited company incorporated in Delaware, USA) ABN 53 126 559 706 t/as Berkley Insurance Australia is an APRA authorised general insurer. Information provided is general only, intended for brokers and has been prepared without taking into account any personā€™s particular objectives, financial situation or needs. Insurance cover is subject to terms, conditions, limits, and exclusions. When making a decision to buy or continue to hold a financial product, you should review the relevant Policy Wording.
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