Professional Indemnity Insurance
Everybody makes mistakes. However, depending on your profession, one mistake could ruin your business if you don’t have Professional Indemnity Insurance.
Professional Indemnity (PI) insurance helps to protect professionals from any errors that they may have made whilst providing advice, designs, training, tuition or any other service.
These errors can include things like making a simple accounting mistake, providing negligent advice or constructing a structurally unsound building. With a PI policy, professionals are protected from claims filed by customers following errors. However, this type of policy only provides cover for errors made by active professionals.
The need for 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 surveyors, solicitors, accountants and architects, a new market of professionals now need to consider PI cover. Examples include management consultants, recruitment agencies, designers, photographers and fitness instructors.
Whether a traditional or new professional, you can protect yourself, your business and your reputation by investing in Professional Indemnity 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.
Why Choose Professional Indemnity Cover?
It is appropriate cover for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Professionals such as accountants, engineers, IT consultants, software developers, planners, estate agents and contractors are prime candidates for carrying Professional Indemnity (PI) Insurance.
Professional Indemnity 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.
Even after they have ceased trading due to things like retirement or a dissolved partnership, professionals might 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.
Premiums can vary greatly, depending on your sector, size of company and the level of cover required. Our team of experts will discuss your business needs and circumstances and provide an insurance solution to meet your requirements.
Professional Indemnity policies are not restricted to a specific business location. Instead cover is held by the policyholder with cover applicable to the advice or services you provide as an expert whilst working.
In many instances no, this type of cover is not essential to operate legally. However it is often a contractual requirement by the client to have professional indemnity cover in place and can be a prerequisite to acquiring work or securing a longer term agreement.
For solicitors this type of cover is mandatory, and certain regulatory boards, including the Architects Registration Board and the Royal Institute of Chartered Surveyors (RICS), require their members to have Professional Indemnity Insurance before they can practise.
In short, Professional Indemnity Insurance will provide cover for claims brought against you by clients whilst providing your services as a qualified expert. In contrast, public liability insurance is designed to provide cover against claims brought against you from a member of the general public.
As your business grows and develops, your insurance needs will undoubtedly change. FOCUS will work with you to ensure that the exposure and risks faced by your business will be protected, leaving you with complete peace of mind.
If there is anything we can help you with in the world of professional indemnity please do not hesitate to contact us.