Who Needs Professional Indemnity Insurance?
Posted on 19th December 2017 by Caunce O'Hara
Professional indemnity insurance is an often overlooked area of insurance, particularly because individuals and business owners assume that it doesn’t apply to them.
Most businesses will benefit from professional indemnity insurance, but as a general rule, you will need PI insurance in the following cases:
- If you provide advice or a consultancy service
- If you handle people’s information
- If you provide an expert service
- If your professional body requires it
- If your client insists that you have it
When people think of professional indemnity insurance claims, they often think of professionals such as solicitors. If a solicitor gave you bad advice and your business suffered as a result of this, the solicitor would be liable for any claims against them, unless they have professional indemnity insurance. Professional indemnity insurance can offer a much more broad range of protection.
Which Professionals can Benefit from PI Insurance?
If you work in a public or client-facing industry, you could benefit from the protection of PI insurance. An often overlooked area of PI insurance protection is against unintentional loss of documents or data. If you handle anyone else’s information or data or documents, then you would be held responsible if these are lost. The reason for losing the documents could be completely out of your control, such as a fire, but you would still be responsible. In this instance, professional indemnity insurance would protect you.
Is PI Insurance mandatory?
Some professional bodies will require you to have professional indemnity insurance in order to be a member. If you are a contractor, it’s also likely that you will need PI insurance in order to be able to win a contract. It doesn’t matter if your business is large or small, the risks are the same if you decide to offer advice, consultancy or an expert service without PI insurance.
What level of PI insurance do I need?
This depends on the sort of work you do and the risk associated with it. For energy contractors, we offer 5 limits of cover, ranging from £100,000 to £2m. For freelancers, we offer 9 limits of cover, ranging from £50,000 to £5m. The amount of PI coverage required will depend on the work you do and the potential risk.
Start 2018 off right by getting your Professional Indemnity insurance in order. Get in touch today to discuss your needs and let us build you a personalised quote.
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