PROFESSIONAL INDEMNITY INSURANCE

Professional Indemnity Insurance (variously called PI or PII) protects you against potential financial losses arising from claims of negligence, errors, or omissions in the services or advice you provide.

This type of insurance is crucial for businesses that offer professional services or an advisory function, including consultants, architects, engineers and financial advisors.

PII covers the costs associated with legal defence and any damages or settlements that may be awarded against you, ensuring that a single mistake won’t jeopardise the financial stability of your business.

The Importance of Professional Indemnity Insurance...

The importance of Professional Indemnity Insurance cannot be overstated. Unfortunately, we live in a litigious society, and even the most meticulous professionals can face allegations of negligence or errors in their work.

In fact, it’s unlikely that you’re going to work your entire career without at some stage being the subject of a grievance of some sort. These claims can lead to costly legal battles, damage to your reputation or that of the business, and significant financial strain.

These claims can lead to costly legal battles, damage to your reputation or that of the business, and significant financial strain. With PII, your business can operate with confidence, knowing that you’re protected against the financial implications of these claims. PII therefore not only covers the direct financial costs but also helps in preserving your business' reputation by working towards a swift and professional response to any allegations.

BEFORE YOU BUY

Before you buy Professional Indemnity Insurance, you should carefully evaluate your specific risks based on the services you provide and the sectors in which you operate.

The premiums for PII are influenced by several factors, including the size of the business, the nature and complexity of what you do, the levels of risk involved and how much cover you feel you need. We’ll be very glad to help with these questions – because legal costs can escalate fast and smaller businesses in particular tend to under-insure.

One more thing. PII isn’t a licence for delinquency! Consistently weak professionals still go out of business, and intentional acts and outright illegality are not covered. It’s still your business to do a good job!