Professional Risks

If you offer expertise and advice as part of your trade or profession, you should consider Professional Indemnity (PI) insurance.

This type of insurance provides financial protection both for the policyholder and their customers, for claims arising due to alleged negligent advice, design, specification or supervision services.

It is hard to please all of your customers all of the time and innocent mistakes can happen. Subsequent disputes can be complex and costly. A PI policy is designed to cover legal costs and compensation which may be deemed payable to your customer.

PI cover may also be activated to remedy mistakes before they lead to a claim from your customer. This could occur for example, whereby Insurers provide funds to rectify design issues which are discovered before the completion of a project, while also providing cover for financial loss to the customer. This helps reduce the potential loss and could safeguard your reputation and client relationship.

Professional Risks are generally protected by a Professional Indemnity policy. So what does this type of policy cover me for?

Why do you need this insurance?

Can you answer yes to any of these statements?

  • You give professional advice as part of your services to clients
  • You are involved in product design which if alleged to be flawed may be subject to legal action against you
  • Your business works in the public domain and you need protection against misusing or inadvertently disclosing confidential information
  • You need access to specialist legal support should someone try to pursue a professional negligence claim against you
  • You provide design and construct services where remedial work to recover from inadequate design work can be costly
  • You require legal assistance when you are asked to sign a collateral warranty
  • While there is no statutory requirement for you to have PI insurance, you are required to take it out in order to secure a contract
  • Your professional body or regulator requires that you have a minimum level of protection

A big thank you to Ben Fox for the way he very efficiently dealt with a Professional Indemnity Insurance requirement I had. From the initial meeting to the production of quotes, everything was quickly and professionally handled, including the ability to select from a variety of options. The end result is that I now have a policy that covers my precise needs and has cost me considerably less than I expected.

Allan MacDougal, Activ Web Design

Why use Glentworth for Professional Indemnity (PI) insurance?

Glentworth has access to all major UK insurers providing Professional Indemnity insurance.

PI insurance can be complex and Glentworth provide expert guidance in helping to assess a suitable indemnity limit and policy for your needs. Under-insurance can be costly and, in considering a suitable indemnity limit, there are many factors to consider, including the prospect of multiple claimants from a single event.

Some insurance companies will offer cover with an indemnity limit inclusive of defence costs, while others will cover defence costs in addition to the selected indemnity limit. Some policies will be on an “aggregate” basis – meaning that the indemnity limit applies to the whole period of cover and is not reinstated to the original limit after a claim. Glentworth will guide you through the terminology in plain English so that you understand the true value of your cover.

Guidance Note:

Professional indemnity insurance is commonly arranged on a “claims made” basis. This means that cover is in place only at the time that a claim is raised against you and not when the work which led to the claim was undertaken. Therefore, if your policy has expired, you will not have cover. If you have ceased trading you are advised to take out “run off” cover in order to protect yourself against potential future claims.

We have three local offices