What is professional indemnity insurance?
Professional Indemnity Insurance (also known as PI insurance) is a type of business insurance to protect you or your business against claims for compensation relating to errors, negligence, mistakes and breach of professional duty.
If you provide services, advice, designs or instructions as part of your business activities, then professional indemnity insurance is a wise investment. In fact, professional indemnity insurance is required by many professional and regulatory bodies.
It is crucial to seek independent advice to make sure you get the correct business insurance to suit the way your business operates.
Alexander Swan will work together with you so that we can build a tailored, all -encompassing policy to perfectly match the size of your business and the risks it is exposed to.
Unlike dealing directly with an insurance company, Alexander Swan has access to multiple insurers and their wide range of policies. This broad reach allows us to present you with a range of options, increasing the likelihood of finding the most competitive rates and comprehensive coverage. We are with you every step of the way, from helping you choose the right insurance through to fully assisting you should you ever need to make a claim.
What’s included in professional indemnity insurance?
Professional Indemnity normally covers your legal liabilities to pay damages (including compensation payments and legal costs) as a result of your business causing financial loss to a client.
Do I need professional indemnity insurance?
Whilst professional indemnity insurance is not a legal requirement, it is a wise investment for your business if you offer advice, services, designs or handle sensitive information. Certain professional and/or regulatory bodies will require that your business has professional indemnity cover (for example, accountants, recruitment agents, solicitors, financial advisers, solicitors, letting agents, architects, chartered surveyors).
Whilst professional indemnity insurance is not a legal requirement, it is a wise investment for your business if you offer advice, services, designs or handle sensitive information. Certain professional and/or regulatory bodies will require that your business has professional indemnity cover (for example, accountants, recruitment agents, solicitors, financial advisers, solicitors, letting agents, architects, chartered surveyors).
If you employ staff, you are legally obliged to take out employer’s liability insurance to protect them. Employer’s liability insurance protects your business against financial losses if an employee is injured, gets sick or dies in connection with their work activities.
What is the difference between professional indemnity and public liability insurance?
Professional indemnity covers claims from clients for professional negligence or errors, whereas public liability is designed to protect you against claims from the public for injury, sickness, death or property damage in connection with your business.
Professional Indemnity Insurance FAQs
Whilst professional indemnity insurance is not a legal requirement, many professional bodies and regulators require businesses to have professional indemnity insurance (for example, accountants, recruitment agents, solicitors, financial advisers, solicitors, letting agents, architects, chartered surveyors). In any event, professional indemnity is a wise investment to protect your business against claims for compensation relating to errors, negligence, mistakes and breach of professional duty.
How much professional indemnity cover you need will depend on various factors such as the industry you work in, the size of the contracts you work on, and the potential risks involved with your business. Some regulatory and professional bodies require minimum levels of professional indemnity insurance in order for you to become a member or for you to trade.
The cost of professional indemnity cover will depend on various factors such as the industry you work in, the size of the contracts you work on, and the potential risks involved with your business. Some regulatory and professional bodies require minimum levels of professional indemnity insurance in order for you to become a member or for you to trade.
