What Is Public Liability & Professional Indemnity Insurance?

Running a business in Queensland means managing a wide range of operational risks every day. Some risks involve physical incidents on worksites, in offices or at client premises. Others stem from professional advice, services or decisions that may unintentionally lead to financial loss for a client.

Understanding the difference between public liability and professional indemnity insurance helps business owners choose the right protection and maintain long-term stability. Each type of cover manages a different category of exposure, and both play an important role in safeguarding day-to-day operations.

What is the difference between public liability and professional indemnity insurance?

Although often mentioned together, public liability insurance and professional indemnity insurance serve distinct purposes.

• Public liability insurance responds to claims involving injury or property damage suffered by a third party due to your business activities. This may include incidents such as a visitor being injured on your premises, accidental damage caused while working at a client’s site or hazards created by employees during operational tasks. The focus of public liability is tangible harm: physical injury, accidental damage and incidents that occur in the course of everyday business activities.

• Professional indemnity insurance, on the other hand, deals with claims arising from professional advice, design, recommendations or services. If a client relies on your expertise and suffers financial loss due to an error, omission or breach of professional duty, professional indemnity is the relevant form of protection. This cover is essential for consultants, advisors, engineers, designers and any business whose value lies in specialised expertise.

In short: Public liability insurance covers physical injury and property damage, while professional indemnity insurance covers financial loss caused by professional advice or services.

Do I need public liability and professional indemnity insurance?

Many QLD businesses require one or the other, but in numerous cases, both are necessary. A contractor may accidentally damage a client’s equipment (public liability) and also provide advice that leads to a costly error (professional indemnity). Consultants, trades, allied health providers, construction professionals and service-based businesses commonly face overlapping risks.

In some industries, specific contracts or licensing bodies may require both types of cover as part of compliance. For others, the need comes down to exposure: If you deal with clients in person, operate in public spaces, manage equipment or provide professional guidance, a combination of public liability and professional indemnity insurance offers a broader safety net.

How much do public liability insurance and professional indemnity insurance cost?

The cost of these policies varies based on the risk profile of the business. Insurers will typically consider:

• The industry and nature of business operations

• The size of the business and annual revenue

• Claims history

• Coverage limits and optional extensions

• The level of professional exposure

• The physical environment in which work takes place

Higher-risk industries, large-scale projects and businesses providing specialised advice often see higher premiums. Location, such as operating in regional QLD or metropolitan centres, can also influence pricing due to different operating environments and exposure levels.

What does public liability insurance not cover?

Public liability insurance does not cover every type of risk. Common exclusions include:

• Injuries to employees (covered under workers’ compensation)

• Professional advice or services

• Damage to your own property or assets

• Intentional or dishonest acts

• Faulty workmanship itself (although damage caused by the faulty work may be covered)

This form of insurance focuses solely on third-party injury and property damage, not business-owned losses or professional error.

What does professional indemnity insurance not cover?

Professional indemnity insurance excludes risks outside the scope of advisory or professional work. Typical exclusions include:

• Intentional wrongdoing or misconduct

• Contractual disputes unrelated to professional duty

• Employee injuries

• Property damage not tied to professional advice

• Known issues or circumstances that existed before the policy period

Professional indemnity insurance specifically addresses claims of financial loss caused by advice or service, not operational incidents or physical damage.

Protect your operations with Broad Risk Insurance Brokers by your side

For guidance on selecting the right mix of public liability and professional indemnity protection for your Queensland business, Broad Risk Insurance Brokers provides professional advice supported by industry experience and a commitment to long-term stability. Our team of Gold Coast insurance brokers works with businesses across a wide range of industries and can assist with broader business insurance needs to support long-term risk management.

To discuss your requirements for public liability insurance and professional indemnity insurance, get in touch with us at 1300 1BROAD (27623).