Understanding Professional Indemnity Insurance
Professional Indemnity (PI) insurance protects you if any 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.
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 Insurance helps to protect you if this happens.
Who needs PI Insurance?
If you own or manage a business or conduct a consultative role which means you offer advice, handle intellectual property or manage data that belongs to a client you should invest in Professional Indemnity insurance for your financial security.
Recruitment Consultants, Accountants and Business Analysts are all examples of roles which would require indemnity insurance.
What does a Professional Indemnity package help with?
There are a variety of PI Insurance packages available that can be tailored to suit you or your business’ needs.
At it’s most basic, The Insurance Octopus’ indemnity policy helps you to defend yourself in the event of an indemnity claim, whether founded or unfounded. It can help you with the cost of legal representation or defense costs in the event that your claim lands in the courts, and also provide cover for agreed compensation costs.
In the years previous to taking out a policy with The Insurance Octopus, if you have had continuous Professional Indemnity insurance in place we can also ensure you have retroactive cover as part of your indemnity policy. This will protect you against any claims that may be made against you for previously completed work when insured by a different provider. To ensure you are eligible for retroactive cover, it is important to make sure you do not let your Professional Indemnity insurance lapse.
What level of cover do I need?
When working out the right level of cover for your business, we would discuss with you the size of the contract and client, the potential cost of your defence costs if it came to the worst, and the maximum compensation that could be awarded against you.
Because of the wide range of industries which necessitate Professional Indemnity Insurance, there are a variety of packages with specific covers designed for each. Our PI Insurance specialists can help to discuss your specific requirements over the phone should you need some help and guidance.
How do I get PI Insurance?
Get in touch with our specialist team here at The Insurance Octopus. They can walk you through the different levels of cover available for your specific industry or trade, and help to you to get a competitive indemnity policy in place.
Alternatively, you can start a professional indemnity insurance quote online.