If I have both, won’t there be overlaps in cover?
Policy exclusions are used to avoid overlaps in cover when you hold both pubic liability and professionally indemnity insurance. For example, most public liability policies offer professional services exclusions.
However, there is a risk that in trying to avoid overlaps in coverage, you leave yourself vulnerable to gaps in your policies.
The complexities of public liability and professional indemnity insurances, how they’re issued and any overlaps in cover can be confusing.
That’s why it’s important to get the right advice and a properly constructed policy from an experienced broker.
Test your knowledge
Now that you know a bit more about the difference between public liability and professional indemnity, let’s test your knowledge.
Are the following public liability issues or professional indemnity issues?
A. A client trips on a mat in your office and injures themselves
B. A car is damaged when a sign post on your premises falls
C. An auctioneer accepts a bid after the fall of the hammer
D. You (or you agency) neglects act on instructions from the Body Corporate to install a non-slip mat and a visitor slips and suffers an injury
To help you decide, you must determine whether the claim arose from a breach of your professional duty as an agent (professional indemnity) or because you breached your duty as an occupier of the common property (public liability).
(Answers: A: Public liability B: Public liability C: Professional indemnity D: Professional indemnity)
Disclaimer: Information in this article is of a general nature and does not take into account the needs of the audience. Readers should consider relevant Policy Wordings and their objectives, financial situation or needs before acting on the information provided.