Business owners usually come to the point of confusion when finalizing what to choose: public liability insurance or professional indemnity insurance for their businesses in the UAE. Which will be the right one to cover themselves and their assets? As a UAE business owner, it is very important to know the several crucial forms of insurance available to protect your company.

Public liability and professional indemnity insurance are two types of insurance offered by insurance companies in UAE that are sometimes mistaken. While these two types of insurance have certain similarities, they are meant to cover different types of risks, so understanding the differences is vital for you.

Public Liability Insurance

Public liability insurance is a type of insurance that offers protection to your firm from property damage, bodily injury, death, and advertising injury claims. This form of insurance can protect your business from third-party litigation and claims. It also covers broad risks that come as a result of your business activities, such as false advertising claims, property damage caused by your business operations, and slip-and-fall incidents. Many additional benefits and add-ons are now offered by several insurance companies in Dubai and the UAE.

Bad situations like an employee of your company accidentally destroying the property of a customer, a competitor blaming your business for deceptive advertising, or a consumer tripping and falling in your store are all examples of the necessity of public liability insurance. This policy covers the cost of legal defense, judgments, and settlements. This policy covers damage to all third-party property and the medical expenses for injured parties.

Professional Indemnity Insurance

This insurance also known as errors and omissions (E&O) insurance covers the claims of professional errors and negligence that resulted in a customer/client financial loss. Engineers, accountants, consultants, architects, and lawyers are professional service businesses and they are usually in need of this insurance.

If a client sues your accounting company for offering incorrect financial advice that caused financial losses, your professional indemnity insurance will cover the damages awarded in a lawsuit, the cost of legal fees, and any other costs associated with defending your firm against the claim. In these types of contexts, professional indemnity insurance always covers the legal defense costs, settlements, and verdicts. It may also cover any financial losses incurred by your customer or client as a result of your firm’s omissions or errors.

Differences Between Public Liability Insurance and Professional Indemnity Insurance

While all sorts of insurance save your firm from financial and legal concerns, there are some important differences between them. The key difference between professional indemnity and public liability insurance is the type of risk they cover. Third-party claims of advertising injury, property damage, death, and bodily injury are covered by public liability insurance, whereas professional indemnity insurance covers claims of professional errors or negligence that end in financial loss for a customer or client.

Another crucial difference is the types of enterprises that usually necessitate each type of insurance. Firms that have a physical location, such as a store or office, and deal with clients or customers in person are often obliged to hold public liability insurance that is offered by an insurance broker in Dubai and the UAE or the insurance companies.

Medical professionals, engineers, lawyers, consultants, accountants, and architects, on the other hand, are frequently in need of professional indemnity insurance offered by insurance companies in UAE. It should also be remembered that some companies may need both types of insurance. A medical practice, for example, may need both professional indemnity insurance and public liability insurance to cover slip and fall accidents in the office.

Which is the Right One for Your Business in the UAE?

The type of insurance that is best and most suitable for your firm is finally decided by the nature of the firm and the risks it confronts. If your firm runs with professional services such as legal or accounting, professional indemnity insurance will be perfect to cover your business from any claim.

If your company is working in a physical location, for example, a restaurant or a retail store, public liability insurance will work best for you, covering your business from property damage or bodily injury. Both insurance models provide you with the necessary coverage for your company, especially in many contexts. A mix of these two will be needed for your company to escape from all possible threats.

Getting the perfect and most appropriate insurance for your firm is definitely a hard task. So it is very important to consult an insurance broker in Dubai and the UAE or seek the help of an insurance company to ensure that you choose the right one for your business. First, you assess the risks involved in your business and finalize the right one for you. So, this is the best way to purchase the insurance. 

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