Professional Indemnity Insurance

There are several reasons why a client may make a claim and this could be for things such as the work you have carried out for them, advice you have provided or negligence on your part.

There are a number of professions that require professional indemnity insurance such as solicitors, accountants, architects and healthcare professionals, whereas other professions have the choice to take out cover such as design agencies, public relations agencies and advertising agencies. A professional Indemnity Policy will cover any compensation you may need to pay a client or cover any legal costs you may incur as a result of negligence. It also covers any costs associated to defending any claims made against you.

Every business should consider PI insurance

he cost of indemnity cover is tailored to the needs of your business and once we understand what your business is all about and have recorded simple details we can provide a quote that suits your budget and needs of cover.

To understand how much cover you need, you will need to think about the risks involved with your business and the maximum you may need to pay out for legal fees and compensation should the worst happen. Once this has been agreed an affordable level of cover will be put in place that comes with regular monthly payments.

Professional Indemnity insurance is known as a ”Claims Made” insurance which means that any claims have to be made during the period that you have agreed in your policy. This would mean that should any incident occur where the client experiences a financial loss as a result of the work carried out or negligence and decides to sue for damages your professional indemnity insurance will provide cover. The features

Professional indemnity insurance comes with a number of features and these are:

• It covers the firm and not the interests expressed by clients and third parties
• A payment will be made only once the liability of the claimant has been understood
• The policy usually covers you for one year
• The premiums are an important part of any firm’s running costs
• The cost of any legal defence will be covered should a claim be made
• It is written on a “claims made” basis which means that the cover is linked to claims made or potential claims made against your business during the period of cover, regardless of when the negligent act or omission took place.

There are many benefits that come with Professional Indemnity Insurance and they are:

• You will be meeting all legal and regulatory requirements
• You will be compliant with any obligations agreed in any contracts
• You will be able to defend any costly claims that are made against your business as a result of any allegations made against your professional conduct, negligence and omissions
• It will be possible to pay compensation to your client should they be awarded by the arbitrators or the courts
• All legal costs will be covered when you are defending the claim, even if they claim has no real substance
• You will receive expert legal advice as well as representations when required
• Your business will be able to function normally as it will ensure minimum disruption
• It will provide your clients with confidence because they will understand that you run your business in a professional manner