Public Liability vs Professional Indemnity Insurance

Some broad examples of liability claims might include:

• A person slipping on spilt water in a shop, resulting in a broken bone.
• An improperly erected shelf falling on a customer in store, resulting in injury.  
• Someone eating contaminated food at a restaurant, resulting in hospitalisation.
• Not maintaining clean cooking exhaust vents/flues resulting in a fire that destroys the neighbouring premises.

• A consultant accidentally sends a client’s personal information to the wrong person and is sued for a breach of privacy.
• A graphic designer is alleged to have created a logo that results in an infringement of copyright, plagiarism or piracy.
• A claim is made against an accountant for acting improperly by failing to disclose irregularities in a review of finances.

PI insurance helps cover businesses and professionals in service-based occupations in the event a claim is made against them. It may be helpful for:

• accountants
• lawyers
• mortgage brokers
• real estate agents
• designers
• architects
• and many more occupations.

Some types of business insurance are required by law depending on the industry you’re in, while others are optional.

If you’re unsure what kind of insurance you might need for your business, consider seeking advice from an expert or business adviser. You can also visit business.gov.au, which hosts tips, guides, calculators and business plans.