What is professional indemnity insurance?
Professional indemnity insurance protects your business if a client suffers a financial loss because of your advice, your work or a mistake on your part. Often shortened to PI insurance, it covers the cost of defending a claim and any compensation you may have to pay. It is essential cover for anyone who provides advice, design, consultancy or professional services.
What does professional indemnity insurance cover?
- Errors and omissions
- Negligent advice or services
- Breach of professional duty
- Legal defence costs
- Loss of client documents or data
- Claims of professional negligence
Who needs professional indemnity insurance?
Any business that gives professional advice or provides a service a client relies on should consider getting professional indemnity insurance, including consultants, accountants, designers, architects, IT contractors and marketing agencies. It applies whether you are a sole trader or a larger firm, and some professional bodies and clients will ask for it before they work with you. Certain trades, such as builders and contractors, are increasingly asked for it as part of a contract or tender process too.
Is professional indemnity insurance the same as public liability insurance?
Although many businesses hold both covers, professional indemnity and public liability are not the same cover, as they protect against different risks.
Professional indemnity insurance covers financial loss caused by your advice or professional work. Public liability insurance covers injury or property damage caused to a third party, such as a client or member of the public.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance depends on your profession, the size of your business, your turnover and the level of cover you need. Higher-risk professions and larger cover limits cost more. We compare the market to find the right level of cover at a competitive price.
Speak to our team today to discuss a professional indemnity insurance quote and arrange the right level of cover.