Professional Indemnity Insurance

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What is Professional Indemnity Insurance?

As a professional it is your duty to take care of your client. If some day you fail to exercise your duty and neglect promises made, then you are liable for the losses incurred by the clients.
Professional indemnity insurance acts as a kind of safety net protecting you and your business from the financial claims made by your dissatisfied customers. Our policy will cover all the legal expenses to defend your status in case negligence claim is made against you.

There are cases where you may not be at fault and still the clients blame you for negligence on your part, professional indemnity insurance will still protect you from the heavy legal charges. If you purchase professional indemnity insurance, it will protect you from such severe actions by covering claim made against you.

Professional indemnity insurance, also referred to as PI insurance, is a type of business insurance that covers you for costs if you make a mistake in a piece of work for a client that causes them financial or reputational loss.

Who needs professional indemnity?

Any professional who guides, advises, or provides services to clients or companies should opt for professional indemnity insurance. This usually includes doctors such as surgeons, consultants, physicians, pathologists, and specialists. For medical professionals, establishments such as clinics, nursing homes, and polyclinics are also advised to invest in a professional indemnity insurance policy

Do I need professional indemnity insurance?

From consultants and accountants, to designers and recruiters, professional indemnity insurance is important for many business types. It might be needed by a self-employed person like a consultant or an accountant, or by a company doing certain types of work. Businesses that might benefit from PI insurance are those that

What does professional indemnity insurance cover?
Professional negligence
If you give incorrect advice or make a mistake
 

Defamation

If you produce or support libel statements about your client
 

Breach of confidence

If you share sensitive information without permission
 

Breach of copyright

If you infringe on copyrights, trademarks or intellectual property
 

Lost or damaged documents

If you lose or damage documents while they’re in your care
 

Employee cover
If an employee commits a malicious act that causes a loss for your client

How much professional indemnity insurance do I need?
Most insurers offer between £50,000 and £5 million in terms of cover. To get a good idea of how much you’ll need, check:
 

Your business contracts
If your contract requires you to have professional indemnity cover it’ll usually specify the minimum amount you need

The value of your project
Factoring in how much you’re being paid, and the overall value of your work can help you judge the appropriate level of cover

Professional or regulatory bodies
You can always ask any regulatory bodies for help and guidance

How much does professional indemnity insurance cost?

Insurers will set your premiums for professional indemnity insurance based on factors such as:

Size and type of business: bigger businesses generally have more at stake when it comes to financial and reputational losses, so you’ll generally need higher levels of cover if your client is a big company

Nature of the work you do: If your business faces high levels of risk, then insurers are also likely to charge more in premiums

If you work in certain professions, regulatory bodies might require that your business has professional indemnity insurance, however, it isn’t strictly a legal requirement.

Yes, as it can be classed as an ‘allowable expense’

If you are unsure if you need professional indemnity insurance, this list of instances when it is advisable to be insured:
▪ You provide an expert service to your clients
▪ You provide consultancy and advice to your clients
▪ You handle personal information and data for your clients
▪ Your professional membership body insists you carry it
▪ Your client insists that you have it.