General liability insurance and professional indemnity insurance are often confused, but they cover different things. Public liability insurance protects against injury to third parties, while professional liability insurance protects professionals from malpractice charges. Liability insurance covers medical expenses, lost wages, and property damage, while professional indemnity insurance covers legal costs and damages resulting from negligence.
General liability insurance and professional indemnity insurance are often confused since both protect against malpractice actions, but the two types of insurance cover completely different things. Public liability insurance protects a business owner from injury to third parties who may be injured on the business premises as a result of his or her negligence in maintaining the property. Professional liability insurance protects professionals – e.g. Doctors and lawyers – from the legal costs of malpractice charges resulting from faulty professional advice they provide to their clients.
Liability insurance is something that should be taken out by anyone running a business where the client has to enter the property to engage in the services of the business. Its purpose is to protect against any injury to the customer which may occur while owning or otherwise resulting from the use of the company’s services. Liability insurance policies generally cover a wide range of costs. They cover the injured person’s medical expenses, lost wages, as well as any property damage that may be sustained as a result of the policyholder’s negligence.
Professional liability insurance is a major purchase for professionals – namely doctors and lawyers – although anyone who makes a living providing expert advice can obtain a professional liability insurance policy. Professional indemnity insurance pays for the defense of the insured for any lawsuit arising from alleged negligence in the performance of his professional duties. Typically, the insurance company must also reimburse the practitioner for any damages he or she is forced to pay due to negligence, or any payments paid in lieu of prosecution.
Liability insurance can apply to different situations. A typical example would involve a shop owner whose property a customer slips and falls from a carelessly unattended spill. All costs resulting from the injury, including pain and suffering, would be covered under a liability insurance policy.
Conversely, one situation where the question of whether or not someone has professional indemnity insurance would be relevant is when a client seeks the advice of an attorney. Lawyers operate their businesses with the implicit claim that they are experts in their field. If they give faulty advice on which the client relies and suffer damage as a result, the lawyer can be held liable for malpractice. Professional indemnity insurance would cover attorneys’ fees and other damages resulting from such negligence.
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