Professional Indemnity
Professional Indemnity, sometimes also referred to as ‘Professional Liability Insurance’ or ‘PI’ typically covers legal costs incurred in your defense as well as any damages that may be awarded in court in case of professional negligence. Some policies are also extendable to cover libel, slander and defamation as well as dishonesty of employees or breach of confidentiality.
This insurance is typically designed to cover professionals such as accountants, doctors, lawyers, notaries, architects and many others, but is also suitable for management and business consultants, designers, recruitment agencies, IT professionals, tutors etc.
This type of insurance policy provides you with piece of mind, if you are alleged to have provided an inadequate service or advice, or perhaps inadequate designs to a client of yours which might cause loss or revenue.
There are various professions which need to have Professional Indemnity insurance in place, as required by their respective industry body’s regulatory requirements.
Whether you are obliged to have Professional Indemnity insurance in place or not, it is extremely important to consider that you might be liable for huge amounts worth of compensation payments and relative legal costs.