Professional indemnity insurance can be an essential safeguard for businesses that provide consultancy, advice, or design services. However, many professionals operate in environments where risks extend beyond professional errors. To create a more rounded risk management strategy, it is often worth considering additional types of cover that complement an existing PI policy.
This article explores three common professional indemnity insurance extras: public liability, employers’ liability, and cyber insurance, each offering distinct protection for different business exposures.
Why Extend Professional Indemnity Insurance?
A typical professional indemnity policy is designed to help cover claims of negligence, mistakes, or breaches of professional duty. While this is important, it usually does not include protection for:
- Accidental injury to members of the public
- Damage to third-party property
- Staff-related illness or injury
- Cyber attacks or data breaches
Professionals who interact with clients in person, employ staff, or rely on digital tools may face risks that sit outside the scope of traditional PI cover. Arranging complementary insurance policies can help mitigate these additional exposures.
Public Liability Insurance: Protecting Against Third-Party Claims
Public liability insurance can help cover legal and compensation costs if someone is injured or their property is damaged due to business activities. It is particularly relevant for professionals who:
- Welcome clients to their premises
- Visit clients at their homes or workplaces
- Attend meetings, exhibitions, or trade events
For instance, if a client trips over equipment or slips on a wet floor, a public liability claim could follow. This type of cover is often requested by landlords, local councils, or event organisers as part of contractual agreements.
How It Works Alongside PI Cover
While PI insurance focuses on financial losses caused by professional mistakes, public liability insurance addresses physical injury or property damage. Having both types of cover can provide broader protection for businesses that offer services face-to-face.
Employers’ Liability Insurance: Meeting Legal Requirements
Employers’ liability insurance is usually required by law in the UK if a business employs staff. This cover can help support claims from employees who suffer illness or injury as a result of their work. Even small businesses or sole traders who hire part-time or temporary staff may need this cover.
Claims could arise from:
- Slips and trips in the workplace
- Faulty equipment or unsafe working conditions
- Inadequate training or supervision
Brokers can support business owners in arranging this type of cover to help ensure they meet legal obligations while protecting their team and finances.
Cyber Insurance: Safeguarding Digital Operations
Many professionals handle sensitive data, operate online systems, or rely on digital tools. Cyber insurance can help protect against threats such as:
- Data breaches involving client information
- Ransomware attacks disrupting operations
- Phishing scams targeting email systems
- Accidental data loss by employees
Cyber insurance can cover recovery costs, business interruption, legal fees, and reputational damage. For consultants, designers, or marketers who store client data or access online platforms, this protection may be a key consideration.
Why It Complements PI Insurance
Some PI policies may offer limited data protection cover, but they are unlikely to provide support for targeted cyber attacks or technical failures. Cyber insurance can fill this gap, helping businesses remain operational and protected in the digital space.
Building a More Complete Insurance Package
Together, these insurance types can help offer more comprehensive business protection:
- Professional indemnity insurance helps with client disputes related to advice or service quality
- Public liability insurance helps cover injuries or property damage involving third parties
- Employers’ liability insurance helps protect staff and supports legal compliance
- Cyber insurance helps manage the risks of digital operations and data security
By combining these covers, professionals can tailor protection to their specific needs. Brokers can assist in arranging policies that align with a business’s industry, size, and risk exposure.