professional indemnity vs. public liability

elguyan0

i'm looking to start a small business in the new year and am currently doing my background research. i'm confused about which of the above i will need/its better to have. i'm aware of the broad definitions:

PI: protects you if a client loses money through a mistake you have made. It will cover the cost of damages, or correcting your actions, or may pay for the fees a client is no longer willing to pay.

PL: protects you, or one of your employees, if your business is sued by a member of the public for causing accidental personal injury, illness or property damage.

i'm thinking PL - but do i need both??

thanks in advance

12bdebt3

You should be able to apply for both types of insurance. I guess it depends on your type of business to which is more applicable for you.

12bdebt3

http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1073858790&r.lc=en&r.l2=1074429401&topicId=1075196424

That might be helpful?

dogbot

PI is aimed at those giving advise and who's actions can lead to financial losses. Typicaly this means brokers in the financial sector (insurnace brokers, stock brokers...), accountants, tax advisors, IFAs, Solicitors etc. So, if you are doing something where someone might make a decision and because you have made a mistake they loose money you need it. Some industries (like insurance broking) have a regulatory requirement to have PI cover.

Public liability typicaly covers legal liabilities for death or bodily injury as you indicate.

You will of course need Employers Liability cover if you employ anyone.

Talk to a good small business insurance broker and they will advise you.

elguyan0

thanks guys