Professional indemnity covers damages and defence costs as a result of a third-party seeking compensation. Negligence, breach of contract, defamation, breach of privacy and intellectual property infringement are all common features of most policies.
Whether you’re a small business or large corporate, we can help you identify an affordable professional indemnity insurance policy designed to meet your needs. As a Willis Towers Watson Network Broker we work with the leading business insurance providers to assist our clients identify the right PI cover to protect against legal costs and damages.
Professional indemnity insurance covers legal defence costs and damages, in the event a client or third-party (for demation, copyright, or IP infringement) makes a claim against your business and seeks financial compensation for a loss they have suffered.
Professionals need to ensure they have sufficient business insurance to guard against claims for financial compensation. Professional indemnity insurance means they can offer their services with the knowledge they have access to legal and financial support.
Many different industry sectors will require professional indemnity insurance to protect their financial interests. Any business that provides a professional service can benefit from the protection the policy can provide. In an increasingly litigious society, if a client feels you haven’t delivered under the terms of your contract or have been negligent, they are more likely to seek financial compensation through the courts.
Accountants need PI insurance in case they make a clerical error or miscalculation which ends up costing their client thousands of pounds and then seeks damages through the courts.
Architects need professional indemnity insurance to offer financial protection if they make a mistake in the planning and design of a building project for a large client which costs millions of pounds to rectify.
Consultants need professional indemnity to protect against breaches of client confidentiality if they accidentally release information, and the client sues them after suffering a loss of reputation.
Graphic designers need PI cover for breaches copyright when creating a new design, in case they receive a cease and desist letter with a demand for compensation.
Engineers need professional indemnity insurance for unintentionally breaches the terms and conditions of a contract, in case a client suffers a large financial loss and seeks damages.
Professional indemnity insurance means you have financial support to protect your interests. The policy cover provides protection against the failure to exercise reasonable skill and care in the provision of professional or advisory services.
There are various factors that insurers will consider when calculating your professional indemnity insurance cost, including, amount of cover, turnover, number of employees, type of activities, location of clients, years in business, contractual jurisdiction, and claims history. Small business quotes start from £322 annually or £26.83 monthly for a £1 million limit.
Professional indemnity insurance should be considered by persons selling their skills and specialist knowledge based on their experience or qualifications. Such people are relied upon as being experts in their fields and hold a greater level of knowledge and specialism in their subject matter than the average person. If you fail to exercise reasonable skill and care, or fail to deliver on the services agreed, there may be rights to compensation.
1.) An architect specifies inadequate materials for a construction project and a client claims £250,000 to rebuild. 2.) A software developer accidentally corrupts files on a client’s system and claims for £550,000 for loss of intellectual property. 3.) An advertising agency releases on online campaign with incorrect information and the client claims £2,000,000 for damage to reputation.
Public liability insurance (otherwise known as general liability insurance) will protect against claims arising from injury or property damage of persons other than your employees in the course of your business activities. Whereas professional indemnity will help protect your company against the failure to exercise reasonable skill and care. If you provide a service to your clients, the coverage is important to cover a breach of professional duty.
Two of the most common business insurance policies small business owners take out are professional indemnity and public liability.
Claims brought under negligence occur when a service provider doesn’t perform their responsibilities to the level required of a reasonably competent person within their profession.