Professionals need to ensure they have sufficient business insurance to guard against claims for financial compensation in providing their services. Professional indemnity claims can be costly and time consuming, even if the allegations are without merit.
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.
However, over the last 15 years there has been a greater emphasis on non-traditional service providers purchasing professional indemnity.
It is common practice for counterparties to require professional service providers to purchase minimum levels of professional indemnity within their contracts.
Many businesses do not appreciate the need to purchase professional indemnity insurance, especially if there is not a legal requirement or if offering services is only part of their business.
Professional indemnity insurance should always be considered by any business where advice, professional, or technical services are offered to a client. We’ve produced a useful guide: How does a professional indemnity insurance policy work?
We recommend you request multiple professional indemnity limit options to appreciate the difference in cost. Note the amount of professional indemnity you decide to purchase may not be sufficent to protect against the total cost of a claim.
Below we have produced a simple professional indemnity insurance infographic for small business that explains - What is professional indemnity insurance? Who needs professional indemnity insurance? What is a professional service?
PI Insurance Explained posted by Get Indemnity
This guide is for information purposes and based on sources we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.