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Professional indemnity insurance
Helps protect you if a client claims that your service, actions or advice have caused loss or damage to them.
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Professional indemnity (PI) insurance may be valuable if you tend to work with clients or third parties. If a client claims that a service, an action or advice caused them loss or damage, PI insurance can cover the cost of legal fees, compensation and other expenses.
*Once you have provided your information, Gallagher are able to approach a panel of insurers and will contact you to discuss your quote within the next 24 hours (or the next business day).
Why choose Lloyds Bank for your professional indemnity insurance?
What is professional indemnity insurance and what does it cover?
Professional indemnity can help cover incidents from a small error to a big oversight. This includes if your client makes a claim that you have misadvised them, and this has then caused them a financial loss or harm to their reputation. While you may not mean to make a mistake, PI cover can add a level of protection for you and your business if a claim
No matter how small or big, PI insurance can help protect you from legal fees and compensation claims due to:
Do I need professional indemnity insurance?
Professional indemnity insurance can provide useful cover for a wide range of businesses. If you charge clients for a service, consultancy or advice, it can help add an extra layer of protection. A client may insist that you have PI insurance in place before work can start. While it is not a legal obligation, in some sectors you may be expected to have this type of insurance in place.
Examples of industries that may need professional indemnity insurance include:
How much professional indemnity cover do I need?
Professional indemnity insurance can help cover the cost of defending or settling claims you may face. Every business is unique, so there’s no set amount of cover you need.
Here are a few things you may want to consider:
- Whether your clients or industry body request that you have professional indemnity insurance in place.
- The type of clients, accounts and contracts you have.
- The size of your business. Larger ones that work in high-risk areas may need more cover than small, start-ups with low risks.
- Your legal fees, including the cost of hiring a solicitor, which can cost thousands of pounds.
Frequently asked questions
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No, professional indemnity insurance is not a legal requirement. However, some professional bodies and industry associations may require you to have PI insurance in place if you are a member.
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No matter how big or small, any business can have professional indemnity insurance. Though it can be especially helpful for service-based businesses that work with clients. In this case, it can help mitigate costly fees and lawsuits from clients due to negligence claims.
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If you don’t have professional indemnity insurance, you could put your business at risk. If you get taken to court or a client sues you, you may have to take a loss of income. This can be at a great cost to your company.
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A range of industries should consider professional indemnity insurance. It can help anyone that gives professional advice to a client, which can impact them financially. This includes financial advisors, surveyors, healthcare professionals, designers and more.
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No, professional indemnity insurance does not usually cover poor workmanship. The only exception is if you have specified this within your insured services.
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Below you can find some examples of professional indemnity insurance claims:
- An accountancy firm is being taken to court after a client loses money from taking their advice.
- An engineering company is liable as they made mathematical errors that led to a rise in costs for the build.
- A media brand designs and runs a campaign for a client where brochures have the wrong address. The client claims for lost revenue.
- A designer uses a copyrighted photo on a poster without realising. Their client is then sued and the designer could be liable to pay compensation.
- An architect is sued due to building an extension with a flawed design.
Important Legal Information
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The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.
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.