Professional Indemnity, also know as PI Insurance, Errors, Omissions, call it what you will, unfortunately being human things can go wrong, you need protection.
As a professional you are employed for your expertise, you are expected to deliver quality advice to your client
But what if it all goes wrong?
Professional Indemnity insurance provides you with cover to defend against your professional negligence. It covers the legal costs and expenses in defending the claim.
Who needs Professional Indemnity Insurance?
This can be a very long list, if you provide advice that is paid for the chances are that you really should have PI Insurance. Typically a solicitor giving legal advice, an accountant preparing accounts and giving business advice, an architect providing drawings, computer consultants, project managers, the list goes on.
Is PI insurance compulsory?
In a word no, professional indemnity is not a compulsory class of insurance. That said, if you are a member of certain associations, chartered bodies or government regulated then it can very well be a requirement to comply with that body.
However, if your trade body etc have no requirement for professional indemnity insurance, before you consider not having the insurance cover, consider the financial consequences to your business which could be severe, can you afford to defend an action yourself, and if you are found negligent can you pay any compensation that may be awarded?
What amount of cover do I need
The ball is firmly in your court though, however before you go down the route of some cover is better than none, it could be considered that if the cover you choose is to low then it might not actually be worth while at all, think about it, half way through the defense you realise that you don’t have enough cover!
Professional Indemnity Insurance indemnity levels really start off at £250,000, you could probably get less but why bother, to get a good idea of what the correct amount should be think of the worse case scenario of what could the cost be should it all go wrong
Still a little confused whether you need Professional Indemnity Insurance?
Please call us to go through your business requirements are, we can advise what type of PI Insurance you need, there are different contracts for different sectors so its crucial that you get the right policy for your business. We also look at how it is likely to fit in with the rest of your insurance cover, public liability for instance, we may be able to combine the two under one policy for you.
To find out more about professional indemnity insurance and your business needs
Call us NOW to discuss how we can review your requirements – 01623 889 530