Professional Indemnity Insurance is also known as Professional liability insurance protects individuals from professional risks and related legal costs. It provides indemnity for the insurer in the events of damage incurred to an individual due to the insurer’s professional service. The most common professional risks are malpractice and negligence. Professional Indemnity is mostly availed by Doctors, Lawyers, Chartered Accountants and professional organizations such as Law firms, Hospitals.
Many professions need to have professional indemnity insurance as part of their respective industry body’s regulatory requirements. Even if you are not obliged to have PI insurance, without it, you could be liable for thousands of pounds worth of legal fees and compensation payments – not to 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