What is professional indemnity insurance?
Professional indemnity insurance is designed to protect your business in the event that a client suffers financial losses as a result of the work you do for them. Your clients rely on your professional expertise. If something went wrong causing them to lose money, you may be liable to pay them compensation. Professional indemnity insurance can offer protection against these eventualities, and give you peace of mind knowing that should something unexpected happen, you’re covered.
What does professional indemnity insurance cover?
Professional indemnity insurance is tailored for professionals who provide advice, services or handle client’s data or intellectual property. Essentially, it covers your professional liability should something go wrong with the work that you do. As careful as you may be, mistakes can be made that can have a significant financial impact on your client. Professional indemnity insurance is typically designed to offer protection against these eventualities.
Who needs professional indemnity insurance?
Professional indemnity claims could arise as a result of your business activities from providing an incorrect medical diagnosis to delivering graphic designs that don’t adhere to the brief. As such, different businesses can benefit from taking out this insurance and protecting their work.
As a general rule of thumb, any company or individual that provides advice, a professional service, or handles a client’s data and intellectual property could find themselves vulnerable to a claim.
So, whether you run your very own architecture firm, private dental practice or are an independent personal trainer, professional indemnity insurance could protect your business.
Is professional indemnity insurance compulsory?
Unlike employers’ liability insurance, professional indemnity is not mandatory for businesses under UK law. However, some regulatory bodies require professional indemnity insurance to be in place in order for you to trade in that capacity. For instance, doctors and legal professionals are legally required by their regulators to have certain levels of professional indemnity insurance in place. While you may not be legally required to have Professional Indemnity insurance in place, you may wish to consider this cover for your business if you are doing any design work, providing a service or advice, or handling intellectual property or third party data on behalf of your clients.
Professional indemnity cover to suit your business
To find out more about professional indemnity insurance, call Premierline today or arrange call back to speak to an insurance advisor who can help you compare quotes from UK leading insurers.