Professional Indemnity Insurance

Professional Indemnity

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Accidents can happen at work, despite the company's best intentions. Just one mistake in a business can entail expensive legal fees and a compensation payout should a client or another party suffer a financial loss.

Professional indemnity (PI) insurance protects your company from claims which arise due to poor advice or a mistake being made. It is the correct cover for something going wrong in your workplace.

Why does my business need professional indemnity insurance?

Your business may need professional indemnity insurance should:

  • It provides advice to clients.
  • It offers a professional service.
  • It deals with confidential information.
  • It uses copyrighted material or intellectual property which belongs to others.
  • You belong to a professional body which makes PI insurance compulsory.
  • A client stresses that your company must have it prior to it offering you work.
  • You pay to rectify an error you have made or defend yourself when the quality of your work is questioned which could put an end to your business.

PI covers the cost of legal defence and any compensation you may have to pay to rectify matters, given the level of cover - should a claim for negligence be lodged against your business.

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