You should consider taking out a professional indemnity (pi) insurance if your business gives advice or offers a professional service to another business. Professional indemnity insurance covers you if you are deemed to be negligent or make a mistake which causes a client's business to suffer a financial loss.
For example, were an architect to make a mistake in the plans for a construction project and it is only discovered once the building work is underway and the materials have been purchased, the client would be likely to lose money through time required for re-building and the cost of wasted materials. The architect would be liable for this cost.
Types of business that often take out professional indemnity insurance include; accountants, IT consultants, business consultants, journalists, architects, financial advisors, engineers and many more.Start your quote
An example of a claim:
An employee accidently sends an email containing confidential information to an incorrect party. The customer sues the firm for breach of confidentiality.
What did the insurance company pay?
The professional indemnity claim, costing £35000 including legal costs, was covered by the insurance policy.
What did the insurance not cover?
A £250 excess, plus the cost of loss of reputation of the firm and loss of future contracts from that customer.Talk To Us Today