Professional indemnity insurance is similar to public liability insurance, however it’s aimed at businesses that give advice or provide a professional service to clients. While you should always aim to provide the highest level of service that you can, sometimes things can go wrong, even if you have everyone’s best interests in mind.
You’re not required to take out professional indemnity insurance by law, but it can give you and your business a high level of protection and peace of mind. If a client isn’t happy with the level of work you’ve provided, and feel that you have cost them money, they may pursue legal action.
Professional indemnity insurance protects you and your business if a client believes you’ve made a mistake, been negligent or offered incorrect advice. If they feel this has ultimately cost them money, they can pursue legal action against you.
It’s not a legal requirement to have it, but if you give advice, offer professional services, handle sensitive data or intellectual property, then it’s highly recommended you take out a policy.
However, there are some regulators and professional bodies that enforce compulsory professional indemnity insurance, such as Solicitors, Financial Advisers, Accountants & Architects.
Some clients may also choose to only work with people who are covered by a professional indemnity insurance policy.
With professional indemnity insurance, you’re covered for things like:
There are several scenarios where a client may look to pursue legal action. This can include things like:
Generally speaking, if you work with sensitive information or offer advice and guidance to clients, you should consider taking out professional indemnity insurance to protect your business and your employees.
At Dead Simple Insurance, we know what policies you need to protect your employees, yourself and most importantly: your business. We can help you find the best prices from reputable providers, taking the hassle out of insurance.