What is public indemnity insurance?

Insurance policies that provide compensation to an insured party for certain unanticipated damages or losses up to a specified limit—usually the value of the loss itself—are known as indemnity insurance policies. Insurance firms offer coverage in return for the payment of premiums by the parties who are covered. These insurance are typically used to cover professionals and company owners who have been blamed for a specific occurrence, such as a lapse in judgment or malpractice, by providing them with financial compensation. A letter of indemnification is often used to convey this information.
Public liability insurance can cover compensation claims if a general member sues you for injury or property damage. In contrast, professional indemnity insurance can cover compensation claims if a client sues you for a mistake that you make while performing your job duties and duties as a professional.
In the corporate world, public liability insurance and professional indemnity insurance are two types of insurance policies used to cover compensation claims.