Professional Indemnity Insurance Explained

Even the most reputable company can find itself in a dispute with a client over a mistake.  How can you protect the business you have worked so hard to build up?

So, to define Professional Indemnity (PI)  insurance it would be described as liability insurance that covers your business in the event that a third party claims to have suffered a loss as a result of your professional negligence. That third party for example may take legal action is taken against you claiming to have suffered a loss as a result of advice you have given in a professional capacity.

You can get access to PI insurance online and why not talk to a professional indemnity insurance broker?

Who Needs Professional Indemnity Insurance?

You might be thinking, 'do I need professional indemnity insurance, I’m not an accountant.' A 'professional' is generally regarded as any person who offers specialist advice, design specification or other professional services and can include designers, consultants, advertising agents, translators and private investigators amongst others, as well as the more ‘traditional’ professions such as accountants, surveyors and solicitors.

What Can Go Wrong – Why you might need Professional Indemnity Insurance.

Safety Consultant

A man was injured when he fell from scaffolding approved by the safety consultant.  £75,000.

Landscape Architect

Designed a pond on a golf course which was not water-tight; the client sued for the cost of lining.  £30,000

Estate Agent

Allegedly undersold a property.  Five months later, it was resold for double the previous price.  £200,000

How do I get a Professional Indemnity Insurance Quote?

Why not talk to a Professional Indemnity Broker? You’ll need some basic information such as:-

• Total income
• Limit of indemnity and excess (if you’re not sure, that’s how talking to a qualified Insurance broker can help as they will advise you)
• Nature of your business and the risk profile (this relates to the type of advice you give, products sold and any management and business issues)

To talk to an expert in your area and get a quote.