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.
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 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.
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.
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.
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.
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.
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.
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.