What is professional indemnity insurance and do you need it?

Professional Indemnity Insurance is protection for companies and contractors who give advice or offer a professional service to other businesses.

Most mistakes made in the workplace are only small and easily rectified, however some can have much more serious implications. Professional Indemnity Insurance is there to help protect you and your company should you become implicated in a case as a result of a mistake.

In many industries it is a legal requirement to hold Professional Indemnity Insurance, and in others it is required in order to adhere to with the regulatory bodies that govern it. Even if you are not directly required to hold Professional Indemnity Insurance it is becoming more and more challenging to survive without it, as many clients will now insist that every supplier they work with has PII in place.

professional indemnity insurance

Professional Indemnity Insurance will cover you for the following instances up to the limit of your policy:

  • Professional neglect
  • Negligent statement or actions
  • Breach of confidentiality
  • Libel or Slander
  • Loss of documents

This means that should a mistake arise under one of the above circumstances, the amount of compensation awarded against you, and costs incurred for corrective work you have to complete and associated legal costs would all be covered, up to the limits of your policy.

Not only does PII protect you and your company from the financial implications of compensation, it is also there to help you keep the negative impact of a court case to a minimum as experienced legal aid can go a long way to reducing any damage to your reputation.

Types of business that often take out professional indemnity include accountants, IT consultants, business consultants, journalists, architects, financial advisors, engineers and many more.

Please click here for more information on professional indemnity insurance.