Professional Indemnity Insurance
If you are alleged to have provided inadequate advice, services or designs to a client, professional indemnity insurance provides cover for the legal costs and expenses in defending the claim, as well as compensation payable to your client to rectify the mistake.
Regardless of how many years experience you or your firm may have, there is always the possibility you (or one of your team) could make a mistake. Professional indemnity insurance can cover against a wide range of scenarios, including:
Regardless of how many years experience you or your firm may have, there is always the possibility you (or one of your team) could make a mistake. Professional indemnity insurance can cover against a wide range of scenarios, including:
- Professional negligence (i.e. making a mistake in a piece of work for a client)
- Loss of documents or data
- Unintentional breach of copyright and/or confidentiality
- Defamation and libel
- Loss of goods or money (your own or for which you are responsible)
Do you need Professional Indemnity Insurance?
If you provide advice, designs or a service to your clients, you should give serious consideration to professional indemnity insurance.
Three quarters of small business owners say they worry about making mistakes on client projects, almost half worry about giving bad advice, and a quarter worry that one of their clients will make a compensation claim related to their professional services.¹
But despite their worries, more than half of those paid by clients for business advice still fail to buy professional indemnity cover.²
While most firms enjoy good relationships with their clients, a mistake in a project can change working dynamics overnight. The chances are that if a client suffers a significant financial loss as a result of your negligence, they are likely to seek recompense.
It used to be that only traditional professionals took out this cover. However in this litigious age, there are many professions and occupations that may need PI cover. These include architects, construction design, consultants, IT professionals, doctors, teachers, private tutors, recruitment professionals, designers, fitness professionals and dance teachers. There are many more.
Three quarters of small business owners say they worry about making mistakes on client projects, almost half worry about giving bad advice, and a quarter worry that one of their clients will make a compensation claim related to their professional services.¹
But despite their worries, more than half of those paid by clients for business advice still fail to buy professional indemnity cover.²
While most firms enjoy good relationships with their clients, a mistake in a project can change working dynamics overnight. The chances are that if a client suffers a significant financial loss as a result of your negligence, they are likely to seek recompense.
It used to be that only traditional professionals took out this cover. However in this litigious age, there are many professions and occupations that may need PI cover. These include architects, construction design, consultants, IT professionals, doctors, teachers, private tutors, recruitment professionals, designers, fitness professionals and dance teachers. There are many more.