Nov 2016 incorporated Feb 2017A professional indemnity (PI) policy covers “professional advice and services”; a public liability (PL) policy covers a legal liability to pay compensation for injury or property damage arising out of a business or the products supplied by it. PL cover is now often required by principals. Both policies should be aligned and with the same insurer to avoid potential arguments about which policy should respond to a claim.DO I NEED PUBLIC LIABILITY COVER?Because the Professional Indemnity policy arranged by NZACS has been written around NZ architects, their normal business activities will be covered. On renewal there are several options relating to additional cover, including Public Liability.Some clients may require you to carry PL cover, or, after reading this, you may consider that for the minor cost involved it would be prudent to tick “yes” at the public liability question in the proposal form.If your Public Liability insurance is aligned with the Professional Indemnity insurance policy and with the same insurer, you avoid arguments between insurers – or between you and the insurers - as to which policy should respond to a claim. SOME EXAMPLES OF PUBLIC LIABILITY CLAIMS:Property damage to property in your care, custody or control including client premises and their contents. (Example: On site you accidently knock over an expensive antique or disconnect a vital piece of equipment).Landlords and Tenants Liability, including liability for property damage caused to other tenants. (Example: You caused damage to premises rented by your business, and the owner’s insurers are seeking recovery from you.)Contract Obligations. Often a requirement in contract is that you carry PL insurance. (Examples: Your actions whilst on site cause personal injury to others; and/or you are caught in a cross-claim as a result of being one of multiple parties included in public liability cover for a project.)If you have questions about these issues, and they are not answered by our website www.nzacs.co.nz use the contact details there to seek an answer.