Professional Indemnity (PI) insurance provides financial protection for professionals in a wide range of industries.
Businesses that provide a professional service (e.g. accountants, lawyers, financial planners, management consultants, real estate agents etc.) are regarded by their clients as experts in their fields. In such a litigious environment, clients will not hesitate to make a claim against these ‘experts’ where they believe they have suffered a financial loss as a result of their actions.
In addition, many professional bodies require Professional Indemnity insurance as a pre-requisite to obtaining a practicing certificate or membership of the association.
Why you should consider it.
Even where professional indemnity insurance is not mandatory for an industry, we strongly recommend it to any business that is providing professional services or advice in exchange for a fee. For example, if you are a structural engineer, IT consultant, or even a graphic designer, this insurance will cover you for any unexpected errors or negligence that may occur as a result of your services.
Even if you are outsourcing work to a contractor, you may still be legally liable for any errors THEY make, so it pays to be protected!
What does it cover?
Professional indemnity insurance is a wide ranging solution and may include anything for accidents to errors and omissions.
Obviously this is policy dependent, however, it can cover:
| Type of cover | Potential benefits |
| Civil liability | Civil liability to a 3rd party which results from the conduct of your business |
| Inquiry costs | The cost of defending an inquiry by a regulatory body into your professional conduct |
| Defence costs | The costs involved in actually defending a claim |
| Fidelity cover | The direct financial loss to your business caused by the dishonest or even fraudulent conduct of one of your employees |
| Advancement of costs and expenses | Any additional costs and expanse that you incur during a claim |
What isn’t covered?
Like other policies there are exclusions.
These can include:
- Contractual or commercial liabilities
- Liability that results from fraud or dishonesty
- Pollution
- Depending on your occupation, third party bodily injury or property damage
As Insurance is a complex subject, please talk to us now for professional advice and to make sure your level of coverage is appropriate, adequate, and sufficient to your requirements.
The List of Risks or the range of insurances available is not exhaustive, if there are any particular risks that are possibly unique to your type of business and/or for any specific or special requirements, please seek our assistance and guidance.