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
See more examples of Professional Indemnity Insurance claims
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.
Read more on How much professional indemnity cover do I need?
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.
Read our guide to Liability Cover
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.
This service will provide you with access to specialist insurance advisors who will search a panel of leading insurers offering a range of products. To get you the cover you need at the price you want.
Choose the right way to get the cover for your business
Lloyds Bank plc is an introducer to Arthur J. Gallagher Insurance Brokers Limited who arrange and administer Lloyds Bank Business Insurance Services and source products from a panel of insurers.
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Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.
We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.