Guide
Public liability vs professional indemnity
They’re the two covers small businesses confuse most. Public liability is about injury and damage. Professional indemnity is about financial loss from your advice. Here’s how to tell which one responds, and when you need both.
- A side-by-side comparison
- Request both covers in one form
The difference, in one line
Public liability covers injury to people and damage to their property caused by your business. Professional indemnity covers a client’s financial loss caused by your advice or professional service.
Side by side
| Compared | Public liability | Professional indemnity |
|---|---|---|
| Covers | Injury and property damage | Financial loss from your advice or service |
| Who claims | Customers, clients and the public | Clients who relied on your work |
| Typical claim | A client trips in your studio | A client says your plan cost them money |
| Cover is based on | Usually when the injury or damage happened | When the claim is made |
| Often required by | Councils, leases, head contractors | Client contracts, regulators, professional bodies |
Which one responds?
| Situation | Cover that usually responds |
|---|---|
| A customer slips on your shop floor | Public liability |
| Your design error delays a client’s build | Professional indemnity |
| You damage a client’s laptop while installing software | Public liability, as property damage |
| Software you configured loses a client’s sales | Professional indemnity |
| A client is injured following your exercise program | Professional indemnity, according to AUSactive’s guidance for fitness professionals |
| A client trips over your equipment during a session | Public liability |
Who needs both
Anyone who gives advice or a professional service and also deals with people or property. AUSactive, for example, requires its registered exercise professionals to hold both. Consultants who work on client sites, allied health practitioners, designers and IT installers commonly hold both too.
You can request both in one form. Tell us what you do and pick public liability and professional indemnity together.
How to compare both covers
Public liability vs PI questions
Do I need public liability or professional indemnity?
If people visit you, or you work on their premises or property, you need public liability. If clients rely on your advice or professional service, you need professional indemnity. Many businesses need both.
Is professional indemnity the same as public liability?
No. They cover different risks: injury and property damage for public liability, financial loss from advice for professional indemnity.
Can I get public liability and PI in one policy?
Some insurers package them together and others sell them separately. Either way, you can request both in one form.
Which is more expensive?
It depends on your occupation. The price of each reflects the risk in your work, so compare quotes for both.
Compare the covers
More guides
Sources
Public liability and PI