Professional Indemnity Insurance
Protection against incorrect advice and service.
Professional Indemnity Insurance refers to protection against incorrect or inadequate advice and services that you give. Unfortunately, any business can produce work resulting in both financial and reputational loss for their client and this is sometimes only uncovered long after the contract is completed.
How should I be insuring my professional company?
Whilst it is easy to focus on the rewards associated with managing a business, it is crucial to also recognise the many risks that coincide with the rewards. To protect your business against unexpected situations and risks that you are naturally exposed to, Professional Indemnity (PI) Insurance along with Directors & Officers cover are highly recommended types of business insurance covers. If you have employees or multiple Directors, then Employers Liability is a legal requirement.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance refers to protection against incorrect or inadequate advice and services that you give. Unfortunately, any business can produce work resulting in both financial and reputational loss for their client and this is sometimes only uncovered long after the contract is completed. In this instance, your company can be held responsible which is when Professional Indemnity Insurance supports your business.
At SJL Insurance Services, we provide insurance that can cover expenses, legal fees and pay outs incurred should an allegation be made against you by a client for providing an inadequate service.
Is Professional Indemnity Insurance compulsory?
Professional Indemnity insurance isn’t a legal requirement, but many potential clients won’t hire you if you don’t have adequate cover at the right level. Whilst PI insurance is not a legal requirement, it is compulsory for a selection of professions such as solicitors and insurance brokers. In particular, PI is recommended for those who provide advice and consultancy and handle important client data.
The following are some of the professions that require PI insurance:
- Website & Application Developers
- Software & Technology Companies
- PR Consultants & PR Agencies
- Estate and Lettings Agents
- Marketing, Advertising and Sales
- Design and Branding
- Media and Broadcasting
- Education and Care
Do i need Professional Indemnity Insurance?
Here are a few considerations to help you decide if professional indemnity insurance is necessary for you:
Industry requirements: Certain industries or regulatory bodies may mandate professional indemnity insurance for practitioners. It is important to understand any legal or professional obligations specific to your field.
Client requirements: Clients or customers you work with may require you to have professional indemnity insurance as a condition of doing business with you. This is common when working with government agencies, large corporations, or other organizations that want protection against potential errors or omissions.
Risk exposure: Assess the level of risk associated with your profession and the potential impact of errors, negligence, or professional misconduct on your clients. If there’s a possibility that your advice, services, or actions could lead to financial losses or harm to others, having professional indemnity insurance can provide valuable protection
Financial implications: Consider the potential financial consequences of a lawsuit or claim against you. Professional indemnity insurance can help cover legal defense costs, settlement fees, or damages awarded to the claimant. Without insurance, you may have to bear these costs personally, which could be financially devastating.
Professional Indemnity Insurance FAQs
As a Director, you are responsible for making big decisions within your company. Unavoidably, some of these decisions may produce a negative result for your client or company. It is therefore imperative that Directors insure themselves against personal and business losses for these unfortunate circumstances with Directors and Officers Insurance.
Employers Liability Insurance is required by law to protect employees against personal injury claims that occur as a result of Employer negligence. As an employer, you are legally and morally responsible for the health and safety of your staff. This includes any injury or disease caused by the conditions of employment.
SJL Insurance Services build a bespoke quote, catered for your business and needs. Receive your free, no obligation quote for Professional Indemnity Insurance, Directors and Officers and Employers Liability Insurance today.
Whilst not a legal requirement, with the significant and consistent increase in cyber crime year on year this is now an essential cover for every business with any online presence or cloud based system.
Professional Indemnity insurance provides protection against finacial losses for clients based on your advice or service (for more advice visit our Professional Indemnity services page), and whilst some policies can provide an element of cover for cyber related losses a stand alone policy is a much better option.
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