When insuring a business, there are a variety of insurance policies that should be obtained. The exact sort of insurance policies vary and their applications vary according to the type of business. Two types of business insurance that can be acquired include professional liability insurance and public liability insurance. Many people confuse the two for being essentially the same thing when in actuality they are not. For more information about the differences between the two, visit Markel UK Direct Insurance.
For a business there is only one kind of insurance that is required by law and that is employer’s liability cover. This sort of coverage protects employees in the event of accidents. While this type of insurance is required, it does not mean that this is all a business owner needs to be protected.
Professional indemnity insurance and public liability insurance are actually two very different types of business insurance. Professional indemnity insurance provides protection for a business in the event that a customer makes a claim of negligence against them. This coverage can pay for several aspects of a claim. First, it can pay for legal services. These legal services can be those used in defense of the claim, or those services obtained in order to try to settle the claim out of court. Legal expenses can get quite costly, so having this kind of insurance can prevent businesses from sustaining crippling financial burdens. Professional indemnity insurance also will help pay any monetary damages awarded to complainants. Those businesses or professionals that provide some sort of advice to clients are especially vulnerable to claims. Therefore, professional indemnity insurance is highly recommended.
Public liability insurance covers a business in the event that a third party files a claim. It is very rare that a business have no contact with third parties. This is especially important if you have customers setting foot in your workspace. There’s a potential for them to become injured. This is where public liability insurance kicks in.