Do I need Professional Indemnity Insurance?
Do I need Professional Indemnity (PI) Insurance?
Here are some reasons why you may need Professional Indemnity Insurance which might help make things clearer:
- You provide advice and consultancy - Clients can claim compensation if there’s a mistake in the advice you’ve given
- You provide an expert service - In case you make a mistake in designs, plans or calculations
- You handle people’s information - You could face claims if you accidentally disclose data or infringe on a client’s legal rights
- A client insists you have it - Many clients will require that you have professional indemnity insurance in place before you can start working for them
- Your professional body requires it - You might belong to a professional body or industry association where professional indemnity insurance is compulsory
What professions need PI?
Professional indemnity is designed to provide cover to professions who give advice or provide a service as part of their business. Examples of professions that normally require PI are:
- IT consultants
- business consultants
- design and construction
- interior designers
- coaching, training and education
- risk management
- town planning
This is not an exhaustive list as many professions can require PI Insurance.
What does Professional Indemnity Insurance cover?
Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you’re alleged to have provided inadequate advice, services or designs that cause your client to lose money.
What kind of claims can Professional Indemnity Insurance provide cover for?
Professional Indemnity Insurance is designed to protect you against the cost of dealing with a claim from a disgruntled customer. Whether that’s due to a mistake in measurements or strategic advice that ends up losing a client money, it’s important to ensure you’re covered should an error occur.
For example, you may be faced with paying compensation to a client if they make a claim of:
- Negligence – Losing or misplacing confidential documents.
- Infringement of intellectual property rights – Using a copyrighted image or photo without getting the appropriate rights or licence.
- Breach of confidence – sharing confidential or commercially sensitive information without consent
How much professional indemnity cover do I need?
Your business is unique so it’s not always easy to know how much cover you need. Your cover requirements can depend on many different factors.
Do I need liability cover?
If your customers visit your premises, or you visit their offices or homes, then you may also need Public Liability Insurance.
Liability insurance provides protection in the event of an accident or injury to your customers or members of the public, or damage to their property.
How can Lloyds Bank Business Insurance Services help you protect your business?
We know your business is important to you, and keeping it safe and secure will allow you to focus on the important day to day tasks.
To help you do this we have chosen to work with Arthur J. Gallagher Insurance Brokers Limited, one of the UK’s largest insurance brokers.
This service will provide you with access to specialist insurance advisors and a panel of leading insurers which means you can choose from a range of products to get the cover you need at the price you want.