Liability Insurance And P.I. - What's The Difference

Liability Insurance And P.I. - What's The Difference

In the insurance world, professional indemnity and public liability insurance are both regularly shortened. Leaving them referred to as PI and PL respectively. Though the policies are far more different than a single letter implies and the confusion they cause across businesses could leave you with the wrong type of cover. In this blog Coversure Nottingham, Nottingham’s independent insurance brokers, explore the differences between the two covers and which version you may need.

The Difference Between Professional Indemnity and Public Liability Insurance

The main difference between the two is that public liability insurance is more physical and protects against members of the public becoming ill, injured or their property being damaged. Whereas professional indemnity cover protects you against claims from negligence in your work, areas such as loss of documents, data breaches and libellous statements.

Often, professional indemnity will be focused more on claims for financial loss whereas public liability protects the physical elements of either possessions or the individuals themselves.

What Businesses Need Professional Indemnity Insurance?

The common businesses that require professional indemnity cover are usually those that provide advice services, such as financial advisors, mortgage brokers, architects, lawyers, consultants and so on. With protection against lawsuits for negligence, data breaches and breaches of confidentiality, it’ll regularly be used by businesses in serviced offices who don’t offer physical products.

What Can Professional Indemnity Insurance Cover?

In an increasingly litigious world, professional indemnity cover is crucial to protect modern day businesses. A comprehensive PI policy (like one from Coversure Nottingham) can protect against:

  • Breach of duty – if you fail to meet the standard of care required by law, you could be liable to hefty court fees. With PI insurance, you’ll be covered
  • Civil liability – if you don’t intend to cause harm but your actions cause it and you’re deemed liable, civil liability cover will protect you from the legal costs
  • Breach of data – if you lose or leak data in relation to your client and they sue you for damages, insurance would cover the costs of the legal battle
  • Breach of confidentiality – similar to breach of data, if you happened to break a confidentiality agreement with your client and were sued for doing so, insurance would be there to pick up the pieces

For the most part, professional indemnity cover will protect you from claims or legal battles as a result of your negligence or errors. Want to know more about PI cover and how it can protect you and your business? Contact Coversure Nottingham on 0115 837 5592 or email

What Businesses Need Public Liability Insurance?

The scope of businesses that need public liability insurance is broad and you can mainly boil it down to any business that is in regular contact with members of the public. Whether that’s a shop on a high street, a tradesman working on homes or even a taxi-driver, if you’re encountering members of the public regularly it’ll be a worthwhile cover for you to have.

What Can Public Liability Insurance Cover?

Public liability covers a wide range of possible scenarios for public facing businesses. If your business is sued by a member of the public for damaging their property, injuring themselves or becoming ill, you can rest assured you’re protected from the legal costs. This protects you from incidents such as:

  • Rubble or tools falling from scaffolding and harming members of the public
  • Accidentally damaging someone’s property or possessions whilst making a delivery
  • Your shelves falling in your shop and injuring a shopper or damaging their belongings
  • Your shop’s environment or work causing a visitor to get ill

When you’re dealing with the public regularly, these incidents can happen more than you’d think and public liability insurance becomes vital.

Do I Need Both Professional Indemnity and Public Liability Insurance?

Some businesses will benefit from having both PI and PL insurance cover. Though different covers, businesses such as tradesmen will be better protected from having both policies. This is as you’ll provide advice, consultation and carry out the physical work associated you’ll need both layers of protection.

Like To Know More?

We hope that’s explained the difference between the two covers and you’ll have a greater understanding of what cover your business needs. Want to clarify what cover you’d need or want a quotation for your insurance needs? Contact Coversure Nottingham. You can call us on 0115 837 5592 or email us on

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