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?
- Indemnity for negligence and duty of care to your clients, often called “errors and omissions”
- Protection against inadvertently disclosing your clients confidential or sensitive information
- Infringement of intellectual property rights
- Libel and Slander
- Loss of sensitive documents in your care