Professional and public liability insurance are two crucial risk management tools for businesses, but they cover different potential risks. Public liability insurance covers claims arising from bodily injuries or property damage caused by a business’s operations, particularly customer accidents occurring on the business’s premises.
Professional liability insurance focuses on errors, omissions, and negligence in providing professional services. This distinction is crucial for businesses that offer specialised knowledge or advice. These businesses are more likely to face claims about unsatisfactory performance or mistakes in their work rather than accidents or physical injuries.
Professional liability insurance is indispensable for mitigating financial risks. Mistakes and misunderstandings can occur during service provision. Even if a business operates with the highest standards, a client may be dissatisfied with the results and file a claim. The financial burden of defending against such legal claims can quickly become insurmountable without adequate coverage.
Liability insurance is an insurance product that provides protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable. Intentional damage and contractual liabilities are generally not covered in liability insurance policies.
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