Do you need Professional Indemnity Insurance?

Do you need Professional Indemnity Insurance?

The need for professional indemnity (PI) cover has grown over the past several decades as more people enter professional service-based occupations. While PI insurance still covers ‘traditional’ professionals, such as doctors, solicitors, accountants and architects, a new market of professionals now need to consider PI cover.

PI insurance safeguards against catastrophic losses in the event of a legal action due to a negligent act, error or omission by the professional. In addition to claims of error, omission or negligence, PI insurance may also protect against slander, libel and breach of contract.

Who needs Professional Indemnity Insurance?

In simple terms, anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. For example, professionals such as accountants, engineers, IT consultants, software developers, architects and planners, estate agents and contractors will need PI cover. But there is also new market of professionals who should now consider PI cover, such as management consultants, recruitment agencies, designers, photographers and fitness instructors. PI cover is often required as part of a contract agreed with a customer or client. For some professions, such as solicitors and architects, it can be a legal  or regulatory requirement.

What does Professional Indemnity Insurance Cover?

PI Insurance offers protection for service errors, contract performance disputes or any other professional liability issues. These policies can include legal defence costs, damages and compensation due to professional negligence, which can be substantial.

PI policies generally have both a claim limit and an annual limit, which is based on the insured’s exposure. The claim limit is the maximum amount that will be paid for any single event, and the annual limit is the maximum that will be paid in any one year. Also common extensions include continuation of cover, liability for loss of documents, and court attendance and staff disruption costs.

Even after your business has ceased trading  – perhaps due to retirement or a dissolved partnership, you could still face a professional indemnity claim. That is when Professional Indemnity Run-off Cover becomes invaluable—it protects professionals from claims related to errors they allegedly made in the past. Depending on the circumstances and your profession, you could be liable for claims resulting from your alleged inadequate professional advice, services or designs for up to 15 years after you stop trading.

Talk to FOCUS

There are many different forms of liability insurance and various factors to consider when seeking Professional Indemnity cover for your business. At FOCUS, we take the time to understand your business and the risks you are exposed to. This enables us to make a personalised recommendation with solutions to suit your specific needs. And as  your business grows and develops, our team is on hand to review and adjust your insurance solutions as and when required.

To find out more, talk to us. 

  • For full terms and conditions, click here.

    Entries close 31 March 2021.


  • How Can We Help You?


  • How can we help you?