If you give professional advice in any occupation, you should protect yourself with PI cover or Professional Indemnity Insurance to give it it’s full title. In this litigious society it is important to have cover against your business being sued for whatever reason. This interesting post from Insuranceblog.co.uk addresses the risks to professional people in business.
The The What, When, How, Where and Why Guide to PI Insurance for professionals.
PI covers any errors or omissions you may make in the course of your business. Nearly all professions are at risk today of being sued for giving bad advice.
Are you thinking about Professional Indemnity Insurance?
Before you buy, it pays to consider what Does Professional Indemnity Insurance Cover?
Professional Indemnity (PI) Insurance is designed to protect you in the case of professional error. Unfortunately, no-one is perfect and in the course of your professional life you may make errors of judgement. In this situation, a dissatisfied client may seek some form of compensation, resulting in financial implications for you and your business. Professional Indemnity Insurance will cover your business against legal action and provides defence costs and any compensation that may be judged against you. In simple terms, Professional Indemnity Insurance is financial protection against professional error.
Which professionals need Indemnity Insurance cover?
This insurance is particularly suited to professionals who regularly give advice, deal with intellectual property or are liable for client data. Commonly it can be seen as cover against measurable but non physical damage top clients.
For many professions PI cover is the choice of the individual and how confident they feel in their advice, however for many businesses such as architecture, surveying, accountancy, soliciting and some IT Consultats it is a legal requirement.
Are there any exemptions and terms & conditions?
To ensure the most comprehensive insurance, it is advisable to thoroughly research the policy options available. Many providers of PI Insurance offer industry-specific policies. Professional Indemnity Insurance rules vary by each business sector. The policyholder will usually be required to pay an excess for each claim, and the amount varies according to policy. Suitability of Professional Indemnity Insurance can be achieved by the varying levels of cover available. This suitability can be further tightened by bespoke policies which can be continually amended.
You should make sure that you tailor the PI cover to your particular business requirements. The insurance is ultimately designed to protect you in the case of professional mistakes – choosing the right Professional Indemnity policy is the first step towards annulling these errors. There are various specialist insurance companies that can help provide would be insurers with further information regarding specialist cover for other areas of your business, a quick internet search will yield the many options and services available!
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