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Professional Indemnity Insurance
Professional indemnity insurance, also known as errors and omissions insurance or PI insurance, covers damages and costs in relation to claims for professional negligence or incorrect advice – even if this is provided for free. It is vital protection for any business that provides advice or services in a professional capacity.
- Comprehensive cover
- Cover limits from £50,000 to £100 million
- Available from £100 per year
- An array of policy add-ons available
- In-house claims team
The S-Tech Difference
We’ve worked with businesses of all shapes and sizes across the UK for more than 30 years, so we understand the challenges you face and the importance of providing independent, impartial and practical insurance advice. Our professional indemnity insurance specialists work with a select panel of insurers to ensure you have the right level of cover for your business – and provide expert advice – at a competitive price.
Professional indemnity insurance in detail
Professional indemnity insurance provides cover for legal costs and compensation claims from third parties. These may arise if you provide negligent advice or services that results in financial loss.
- Civil liability If a client or end user suffers financial losses because of any advice, information or designs you provided, PI will cover legal costs, awards and settlements for your business and your employees.
- Breach of confidentiality If your client has entrusted your business with personal information or confidential details and these are unintentionally shared without their permission.
- Defamation You may accidentally damage someone’s reputation in the process of conducting your business, resulting in legal action and compensation being awarded. PI will cover these costs up to the value of your cover limit.
- Copyright/trademark infringement If your advice unintentionally suggests your client should copy or produce a derivative of another work, you may be pursued by the copyright holder or your client for loss of income.
- Loss of documents Covers the cost of the replacement or restoration of documents that were left in the care of your company.
- Formal investigation If you are investigated by your professional or regulatory body, PI will help defend any legal action brought against you.
- Employee dishonesty Provides cover if your customers suffer a loss caused by a dishonest or fraudulent act by a member of your team.
- Disputed fees Legal cover if you seek unpaid fees and your client threatens to counter-sue if you pursue them.
- Pollution This can be added to your policy if advice or designs result in environmental damage.
Compensation claims can still be brought against you even if you provided a service or your advice for free.
Some professional bodies will require their members to hold professional indemnity insurance. These bodies cover solicitors, accountants, architects, chartered surveyors, financial advisers and also insurance brokers like us.
FAQs
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The recommended amount of cover (often referred to as a “limit of indemnity”) varies according to the business involved. It depends upon the type of work undertaken, typical contract values and a host of other factors. If you want guidance on a suitable professional indemnity limit, either contact us or speak to your professional or industry body.
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Generally, any business involved in providing advice, design, specifications or knowledge should consider taking out a policy. We arrange professional indemnity insurance for a whole range of businesses and professions from engineers to teachers.
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It is always advisable to have both. There is cross-over between professional indemnity and public/products liability, but they are two different policies providing different cover.
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No. You will need what is known as ‘run-off’ cover.
Professional indemnity insurance is a claims-made policy (i.e. your claim falls to the policy that’s currently in place, not the one in force at the time an incident occurred), so you need to maintain cover even when you cease trading.
Run-off provides cover for legal costs and compensation claims from third parties after you cease trading. These claims may arise as a result of providing negligent advice or services resulting in financial loss.
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You need to think about the implications of any service or advice you provide failing. You should also consider the value of your contracts and any specific obligations you have. Professional indemnity insurance can help you protect these contracts.
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