Public liability versus professional indemnity

Professional indemnity insurance covers claims arising out of a breach of professional duty. The basis for these claims can be personal injury, property damage or financial loss, with the policy trigger usually being an actual or alleged breach of professional duty. Professional indemnity insurance policies sometimes contain exclusions for claims arising from personal injury or property damage unless arising from an actual or alleged breach of professional duty.

Public and products liability insurance provides you with funds to pay compensation to a third party for injury or damage arising from your business activities or products. However, public and products liability insurance policies often have exclusions in relation to claims arising from the provision of professional services.

If you are a professional consultant, your professional indemnity and public and products liability policies cover very different exposures. However, if in addition to consulting you also sell or supply tangible goods, there can be overlap or gaps between the cover provided by these two policy types.

A specialist broker can assist you in understanding the risks associated with consulting versus contracting, manufacturing or the supply of goods, and can design an insurance program to adequately protect your unique exposures.

The information provided here is general advice only and has been prepared without considering your objectives, financial situation, or needs. If you would like specific advice, please call 03 9059 4000 to speak to one of our specialist consultants.