Why is Professional Indemnity Insurance necessary?

Professional Indemnity (PI) insurance protects you if advice you give in a professional capacity causes a client financial loss or a claim is made against you for negligence, dishonesty, defamation, infringement of intellectual property rights or loss of data.

Essentially, if your business or trade consists of giving advice and the advice given affects your client to the extent that they make a financial loss, they could make a claim against you. Professional Indemnity helps to protect you if this happens.