Professional Indemnity Insurance
Professional Indemnity Insurance (PI Insurance) provides protection for businesses and professionals against claims made against them by past or present clients respect of legal liability.
Coverage will usually include:
- Settlements or judgments against the business or professional arising out of negligent advice or services.
- Legal costs and expenses associated with any legal action.
It can also cover:
- Breach of Confidentiality
- Liability or loss through dishonesty by employees
Litigation has become increasingly common with professionals being held more accountable for their advice and actions and any losses suffered as a consequence.
Even if it’s not your fault, you may need to spend significant amounts on legal fees to prove that the liability isn’t yours. Good professional indemnity insurance gives you the peace of mind that you’ll be covered should any issue arise.
Professional Insurance covers the costs and legal defense costs, as well as any damages payable. Any person who designs, gives advice, or offers services in a professional capacity, and is seen by clients as an expert, should have professional indemnity insurance (PI Insurance). Your client’s losses could be financial, material or physical.
Indemnity insurance is required by certain professionals; including insurance brokers, lawyers, medical practitioners, engineers, architects, IT consultants, financial advisors, management consultants, web designers and some accountants. Professional contractors are often required to have professional indemnity insurance.
In recent years, directors and senior executives of companies have become increasingly accountable for the actions of the business. Management liability and directors’ liability have become more common as there are some very real risks in occupying leadership rolls within a business. Directors and officers liability insurance has become important for most business leaders.
Professional indemnity insurance policies and conditions will vary depending on your industry and the nature of your business.