Why you need it
If you don't have professional indemnity cover, you could risk being sued for a whole
range of different claims. From a piece of flawed consultancy advice to a missed critical
deadline - professional indemnity cover offers protection for negligence claims brought
against your business.
With some professional services, such as legal and financial firms, this type of cover will
probably be a necessary regulation.
What does it cover?
It's likely that you feel confident about the standard of service you offer, but any business
can be at risk of a negligence claim. If your service or advice fails to meet the expectations
of your clients, they may seek financial compensation.
It could help you financailly if claims are made against you for:
- Libel and slander
- Professional neglect
- Malicious falsehood
- Abuse of copyright
- Breach of confidentiality
If false claims are made against you, the costs involved in defending yourself against these
allegations can be significant. Alongside the financial drain, there's also the management
time to consider. Professional indemnity insurance could provide support and access to
specialist claims handlers and solicitors while also helping to cover your legal costs.
Who's it for?
It’s worth considering professional indemnity insurance if your business:
- Regularly gives advice to clients. E.g. a business consultancy firm.
- Handles confidential data for third parties.
- Is responsible for a client's intellectual property.
- Offers a professional service where quality and accuracy could be questioned.
- Manages a project or supervises others.
Know-how
Take a browse though our helpful articles about professional indemnity insurance:
Professional Indemnity Insurance for Consultants