Unlike other types of cover for your business, Professional Indemnity Insurance (PII) will provide cover for legal costs and expenses from claims against inadequate advice or services, rather than physical damage to a client.
The Insurance Octopus has previously outlined the basic parameters of Professional Indemnity Insurance. You don’t legally require the cover, but it could be a ‘common sense’ purchase for your company.
A document written by Lucas Fettes & Partners in April of last year highlights the importance of recognising the limitations of your policy cover to make sure that you don’t incur unexpected claims.
A Broad Perspective
Claims with regards to Professional Indemnity Insurance can be startlingly broad ranging.
The example that Lucas Fettes & Partners cover in their document is about a client who claimed an award from a celebrity presenter. If this was, or indeed has been you, you might have uploaded the picture to your website which is where PII would play its part.
The world, including the business world, unfortunately doesn’t consist of many people who will do something for nothing; for this reason, if you uploaded a picture of you with a celebrity to your website there can be implications regarding using the rights to their image. In this instance, a broad ranging professional indemnity policy would cover the probable demand from the agent of the celebrity in question.
In a similar vein, if you or your company accidentally leaked a client’s personal information and that client were to sue you for ‘damages’, a broad policy would cover this accidental leakage including law fees. Although it can seem like a hapless expense, Professional Indemnity Insurance with a broad policy can save you and your business money across the board.
Speak to The Insurance Octopus today to make sure that you have the correct and overarching Professional Indemnity policy to ensure that your business is protected.