Public & Product Liability Insurance Vs Professional Indemnity Insurance
What Is Public and Product Liability Insurance?
Public and Product Liability Insurance (PPL) 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 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?
PPL 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 which could give rise to a claim).
Do I need both? Maybe…
PPL policies will only respond where there has been personal injury, property damage or advertising injury. PI 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).
PPL policies generally exclude coverage for claims where advice is provided by the Insured for a fee. PI policies however do not.
Need more information – Contact one of our local underwriters on 1300 800 772
Berkley Insurance Australia is a registered business name of the Australian branch of Berkley Insurance Company (ABN 53 126 559 706). Berkley Insurance Company is authorised by the Australian Prudential Regulation Authority as a general insurer to conduct new or renewal business.
The information and opinions contained in this document are general in nature. You should consider what insurance is appropriate for you or seek independent insurance advice.