What is Professional Indemnity Insurance?

For any businesses or individuals who charge a fee for a service, making a mistake can mean significant cost to your customers. And your customers can claim such costs from you. A Professional Indemnity Insurance will cover both the legal fees and compensation for arising from the wrongful acts made against you.

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Types
Does my business need Professional Indemnity Insurance?
Cost
What does it cover?
Types
How much does it cost?

Does my business need Professional Indemnity Insurance?

Professional Indemnity is not a legal requirement. But before you think about whether you need Professional Indemnity Insurance, you first have to ask yourself if your business offers any advice, provides professional skills or services, or handles any information. It doesn’t matter if you are self-employed, or a company, if the service you provide falls into the above category, you would need professional indemnity to cover your risk.

Professions that require Professional Indemnity Insurance (commonly for renewal of their professional license, which is regulated by local authorities) are:

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Doctors

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Architects

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Lawyers

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Accountants

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Engineers

Many other professionals such as financial advisors, insurance brokers, management consultants and marketing agencies, also purchase Professional Indemnity Insurance due to the nature of their advisory work.

What does Professional Indemnity Insurance cover?

Professional Indemnity Insurance covers financial losses or reputational damage caused to your customers under the umbrella of:

Professional negligence

This may be through a mistake on your part, or incorrect information or advice provided to a customer that loses them money. It may also include your client overrunning on their budget and making a compensation claim against you.

Acts of defamation

Such as libellous or slanderous statements made about a customer/client.

Legal costs

Includes compensation payments awarded to the defendant. Your defence costs are also paid, including legal fees.

Loss of documents

Provides cover for damages due to destruction or damage to, or loss, distortion, erasure or mislay of a Third Party’s Documents for which the Insured is legally responsible, provided that the destruction or damage to, or loss, distortion, erasure or mislay of such Third Party’s Documents.

How much does Professional Indemnity Insurance cost?

The costs associated with Professional Liability Insurance vary in accordance with the specific policy chosen. Each policy is created based on the professional advice, products, or services your company provides.

  • Type of industry and services offered

  • Limit of liability or deductible

  • Business practices / exposures

  • Portfolio size

  • Claims history

Contact us for policy quotation,
comparison and unbiased advice now!