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Professional Indemnity & Business Insurance

 
what in professional indemnity insurance?

What is professional indemnity insurance?

Professional indemnity insurance, also referred to as PI insurance, is a type of business insurance that covers you for costs if you make a mistake in a piece of work for a client that causes them financial or reputational loss.

Do I need professional indemnity insurance?

From consultants and accountants, to designers and recruiters, professional indemnity insurance is important for many business types. It might be needed by a self-employed person like a consultant or an accountant, or by a company doing certain types of work.

What does professional indemnity insurance cover?

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Professional negligence

If you give incorrect advice or make a mistake

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Defamation

If you produce or support libel statements about your client

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Breach of confidence

If you share sensitive information without permission

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Breach of copyright

If you infringe on copyrights, trademarks or intellectual property

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Lost or damaged documents

If you lose or damage documents while they’re in your care

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Employee cover

If an employee commits a malicious act that causes a loss for your client

How much does professional indemnity insurance cost?

Insurers will set your premiums for professional indemnity insurance based on factors such as:
Size and type of business:  Bigger businesses generally have more at stake when it comes to financial and reputational losses, so you’ll generally need higher levels of cover if your client is a big company
Nature of the work you do:  If your business faces high levels of risk, then insurers are also likely to charge more in premiums

How much professional indemnity insurance do I need?

Most insurers offer between £50,000 and £5 million in terms of cover. To get a good idea of how much you’ll need, check:
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Your business contract

If your contract requires you to have professional indemnity cover it’ll usually specify the minimum amount you need
coins icon The value of your project

Factoring in how much you’re being paid, and the overall value of your work can help you judge the appropriate level of cover
 
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