Professional Indemnity Insurance additionally referred to as Professional insurance protects individuals from professional risks and related legal costs. It provides indemnity for the insurer in the event of harm incurred to a person because of the insurer’s professional service. the foremost common professional risks are malpractice and negligence. Professional Indemnity is usually availed by Doctors, Lawyers, Chartered Accountants, and professional organizations like Law firms, Hospitals.
Many professions must have professional indemnity insurance as a part of their respective industry body’s regulatory requirements. whether or not you’re not obliged to possess PI insurance, without it, you’ll be chargeable for thousands of pounds worth of legal fees and compensation payments – to not mention lost income from the time spent defending any allegation.
You are likely to need professional indemnity insurance if:
• You provide advice or professional services to your clients (including consulting or contracting)
• You provide designs to your clients (such as working as an architect or design engineer)
• You want to protect against allegations of mistakes or negligence in work you have undertaken for your client
• You work as a contractor, consultant, freelancer or self-employed professional, and your client has requested you arrange professional indemnity insurance in order to undertake a contract
• Your industry association/regulatory body requires you to have it