Category Archives: Professional Indemnity

Do I need Professional Indemnity Insurance?

Any professional wishing to keep safe in the service providers sector must make professional indemnity insurance a priority. Accountants, architects, solicitors and other professionals whose clients depend on the advice provided require such insurance. A skilled professional is sought for experience. It is assumed that with experience, the number of errors made is greatly reduced. There are odd times, however, when things are bound to go off-plan: this deviation is something even experience can’t prevent.

 

If you, as a professional, make an erroneous judgment, there are monetary repercussions that the client faces. The client hires a professional for expert advice in the hope of making a profit. If you become the cause of loss, the client will expect from you a liability to meet loses.

 

How does professional indemnity insurance help?

 

Professional Indemnity (PI) insurance protects the insurer against claims made by the client who’ve incurred financial losses heeding your advice. This loss is often termed as a ‘business injury’ and frequently results in large settlements and compensations.

 

A good PI policy acts as a buffer and protects the insurer from compensation claims and covers the compensation either partially or wholly while also offering the cost of defending the claim. This includes all the legal fees, which the insurer will face should the client go to court.

 

Is professional indemnity insurance a legal requirement?

 

  • There are many cases that demand PI insurance. There are professionals who hold a legal obligation to hold PI insurance. Professionals in the field of accounting and financial advice cannot operate efficiently if they lack the necessary coverage.
  • A professional with PI insurance stands a better chance of securing a deal from the client as compared to another without one. All businesses hold a basic expectation that the hired professional is securely covered.
  • PI insurance is, in short, a good business practice. It protects your business from the consequences of a potential error of judgment.

 

Who needs PI insurance?

 

Professionals who are in the field of Management and Business Consultants, Recruitment agencies and consultants, IT professionals, Designers, teachers and Tutors and Fitness professionals need PI insurance. There are two main advantages this insurance provides:

 

  1. It protects you from filing for bankruptcy should the client sue
  2. Covers all the legal cost when the client sues

 

Get your PI insurance today, it is always better to be safe than sorry.