Professional indemnity insurance, or PI, is an essential financial protection for any business that provides professional services. It can help cover the costs of a claim made by a client against you, and legal fees to defend it.
In addition to errors and omissions, professional indemnity insurance can also protect you against breach of contract, negligence, infringement of intellectual property rights or libel.
Professional indemnity insurance quote
Professional indemnity insurance is a vital financial safeguard for businesses offering advice and services. It can help protect you against the costs of defending legal action against your business, which could include legal fees and time away from the workplace.
It also gives your clients peace of mind that you are properly insured if they ever feel the need to make a claim against you. Many different professions can benefit from this cover, including accountants, architects, estate agents and IT consultants.
How much coverage you need will depend on your specific industry and the work that you do. Typical PI policies cover errors and omissions, breaches of professional duty, and civil liabilities.
Best professional indemnity insurance
If you’re in a business where clients rely on your services and advice, professional indemnity insurance is essential. This protects you if your client makes a claim against you for negligence or breach of duty.
This cover helps keep your business financially safe, and gives you peace of mind that your reputation is protected. It also helps you secure new clients and maintain existing ones.
Some professions require it as a condition of their licensing, such as accountants, architects, financial advisers and solicitors. Others choose it because of the reassurance it offers.
The cost of PI can vary by industry, and the type of work you do. The more risky your work is, the higher your premium will be.
International professional indemnity insurance
If you offer professional services or consultancy, or handle client data and intellectual property, you need to take out a professional indemnity insurance policy. It can help you cover legal fees and compensation costs if you lose a claim brought against you by a client.
There are a lot of moving parts to PI insurance, so it’s important to get it right. A Gallagher broker can work with you to tailor a policy to suit your needs, ensuring you’re protected against the risks that matter most to you.
It’s also important to look out for a policy that offers retroactive cover, as this can be a real benefit. It can save you time and money as claims can often take months or even years to settle, so this type of cover can be incredibly valuable.
How much cover do I need?
It’s important to get the right level of cover for your business. That means assessing the risks that you face and the size of your contracts, then working out how much you would need to pay if you were sued for a mistake in your work.
Professional indemnity insurance was created to give a much-needed financial protection against the losses and risks to which professionals are exposed. It covers a range of errors and omissions, including misrepresentation, breach of contract and defamation.
Having this cover is not necessarily a legal requirement but some professional bodies and clients may require it before they do business with you. Some contracts, especially those in the public sector, also demand a minimum level of cover.
The cost of professional indemnity insurance varies widely by profession and the size of your business. For example, a small web development company could expect to pay a higher premium than a larger attorney firm.