Professional Indemnity Insurance

If your business provides advice or consultancy you have a responsibility to your clients and any breach of that responsibility could lead to a claim against you, causing serious damage to your business.

Professional Indemnity Insurance will protect you against having to pay damages and legal costs should a claim arise against you.

Who is a professional?

Anyone who gives to another person advice and/or services of a skilful character according to an established discipline might be regarded as a professional. That means persons other than those in traditional professions, such as doctors and lawyers, are now considered to be professionals- i.e. computer consultants, advertising agents, acoustics consultants and trade associations.

Why does a professional need a Professional Indemnity policy?

A professional will hold himself or herself out as having a special skill, which
can be relied upon by another. Consequently, the law requires that the
professional exercise the required skill to an appropriate level expected by
that profession. Professionals are only human and mistakes do happen. Any
financial loss arising from a mistake or failure by the professional to exercise
the required level of skill, may mean that an award is made in favour of a
person who suffers a loss, damage or injury. A professional may also be held
to be liable for a mistake even though there was no negligence.

What protection will a Professional Indemnity policy provide?

A Professional Indemnity policy aims to shield the professional’s assets in
the event of a claim, therefore ensuring that he/she is able to carry on their
business. Every policy on the market is different. We will help you compare each policy.

What does a civil liability professional indemnity wording cover?

A civil liability wording will indemnify the insured for claims arising from
any civil award imposed by a civil court, as opposed to criminal liability or penalties enforced by a criminal court. A civil liability professional indemnity wording is broader than a negligence wording, as it will indemnify the insured for claims arising from strict liability, where no negligence is involved.

For more information or a quote on this product please contact us.