Professional Indemnity Insurance
This policy is meant for professionals to cover liability falling on them as a result of errors and omissions committed by them whilst rendering professional service. Professional indemnity insurance (Pl I), or professional liability insurance (PLI) as it can also be known, is essential for any business which offers professional advice and expertise to other businesses or individuals.
If a client believes you’ve been negligent, Pl I will protect you against the legal costs involved in a claim. If you don’t have PPI, you will be left to payout, what could be huge sums of money and may well be enough to destroy any small or medium sized entity.
PII can help protect you against: –
Loss of documents or data, Making mistakes, Accidental breach of copyright or confidentiality, Defamation and liability, Loss of goods or money. and lots of other cases. Group policies can also be issued covering members of one profession. The Policy will indemnify the Insured in respect of ERRORS and/ or OMISSIONS.
All sums which the insured becomes legally liable to pay as damages to third party in respect of Errors and/or Omissions on the part of the Insured whilst rendering professional services, arising out of claims first made in writing against the insured during the policy period, including legal costs and expenses incurred with the prior consent of insurer, subject to the limits of indemnity.
Who can take the policy?
A business may require professional indemnity insurance if:
- It gives advice to clients
- It provides a professional service
- It handles confidential information
- It uses copyrighted material or intellectual property belonging to others
- You belong to a professional body where Pl insurance is compulsory
- A client insists your business has it before they offer you work.
Paying to correct a mistake you’ve made or defending yourself when the quality of your work is questioned could put your business out of business. It is most suited for Chattered Accountants, Financial Accountants, Journalists, Architects, Business Consultants, Creative Marketing & Media Professionals, Financial Advisers, Engineers, IT Professionals, Management Consultants, Lawyers (Advocates/Solicitors/Counsels), employees, partners while rendering professional services. In normal course all claims for compensation have to be legally established in the court of law