Difference btwn Public liability and Professional Indemnity insurance‏?

[kellycell]

Hello,

I had a look at the forums and I am trying to see the difference between Public liability and Professional Indemnity insurance? Could someone shed some light on this please?

I want to get myself insured, but not sure which one to pick or whether I need both.

thank you.

[malvolio]

Hello,

I had a look at the forums and I am trying to see the difference between Public liability and Professional Indemnity insurance? Could someone shed some light on this please?

I want to get myself insured, but not sure which one to pick or whether I need both.

thank you.

Not read the guides then?

Public Liability (PLI) is if you cause damage to someone else, their property or staff in the course of your business. Professional Indemnity (PI) is if you screw up and get sued for damages by the client. You need both. For the extra fourpence you could add Employees Liability Insurance (ELI), since it kind of supports substitution clauses by asserting you might have an employee available if needed

[kellycell]

Not read the guides then?

Public Liability (PLI) is if you cause damage to someone else, their property or staff in the course of your business. Professional Indemnity (PI) is if you screw up and get sued for damages by the client. You need both. For the extra fourpence you could add Employees Liability Insurance (ELI), since it kind of supports substitution clauses by asserting you might have an employee available if needed

Thank you. I definitelly need Professional Indemnity (PI) then. I am a Project Manager, please explain to me why I would need Public Liability?

For Employees Liability Insurance, do I need that in case I cannot go to work and I offer someone else to go on my behalf? And does that insurance cover them in case they f$^k up? Am I understanding this correctly?

thank you.

[BolshieBastard]

Thank you. I definitelly need Professional Indemnity (PI) then. I am a Project Manager, please explain to me why I would need Public Liability?

For Employees Liability Insurance, do I need that in case I cannot go to work and I offer someone else to go on my behalf? And does that insurance cover them in case they f$^k up? Am I understanding this correctly?

thank you.

EL is if your co employs two or more people. If you have two or more people working for your co then EL is a legal requirement. PI and PL are not.

[kellycell]

I am the COmpany's Director, and that is it. So I don't think I need Employers Insurance

[BolshieBastard]

I am the COmpany's Director, and that is it. So I don't think I need Employers Insurance

Then your co has no legal requirement to take EL.

[malvolio]

Worrying that a PM can't do basic research unaided...

Anyway - PI is a good idea, ad helps demonstrate you are a serious business and not a cowboy. It's only mandatory if your contract says you must have it (which it almost certainly does - have you read it?). PLI is the same as home insurance; if you accidentally break somethng expensive while working, you don't really want to pay for it yourself, but if you think that's not a problem that's your call. ELI isn't mandatory if you don't have employees but it costs sod all and is usually bundled in anyway.

[kellycell]

Worrying that a PM can't do basic research unaided...

Thanks Malvolio.. PM's top skill: delegate!

What my contract mentions re liability is:
The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultant’s acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services.

But there was no mention of me being insured.
However I will get Professional Indemnity (PI) insurance, cause you never know.

For PLI the only thing I can think I could break is the laptop or the BB that the company gave me. So I'll probably skip that one.

Thank you.

[SueEllen]

Thanks Malvolio.. PM's top skill: delegate!

What my contract mentions re liability is:
The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultant’s acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services.

But there was no mention of me being insured.
However I will get Professional Indemnity (PI) insurance, cause you never know.

Then you have the choice in that case of either:
1. Self insuring i.e. you pay up if the client demands
2. Buying PI insurance i.e. they pay up if the demands

[kellycell]

Hmm reading this again:
The Consultancy shall indemnify the Client against all loss and liability suffered or incurred as a result of the Consultant’s acts or omissions. The total liability under this clause shall not exceed the total sums payable for the Services.

I think it's worth me getting Professional Indemnity (PI) worth up to the amount of how much I will earn during this contract. i.e. If I earn 100k then I will get a PI that will cover that (or a bit extra), rather than getting a policy for example that will cover 1million, cause I won't be earning this much. Therefore the insurance will be cheaper.