Professional Indemnity Insurance
Professional indemnity insurance is one of the types of business insurance that some professionals will have to take out. It is usually considered by those who dispense advice or professional services to others.
Compare Professional Indemnity Insurance With Money Pug
In order to save money on getting the professional indemnity insurance that you need in place, check out the listings on Money Pug’s website. Make sure that you compare the prices and other details of offers from different insurers before you determine which one is right for your needs. That way, you can be sure that you are getting the right level of cover for the best price.
Is Professional Indemnity Insurance a Legal Requirement?
If you are in a registered profession such as architecture, accountancy or law, or you provide financial advice regulated under the law, then it will probably be compulsory for you to have this form of insurance in place – there may also be a minimum level of cover stipulated by a professional body of which you are a member.
It is not a legal requirement for most professions but you may be asked to have it in place by other companies that you are working with. This type of insurance covers you for if someone says that your work as caused a problem or you have given them bad advice, and takes legal action against you. In this scenario, you could face a large legal bill if you do not have professional indemnity insurance in place. A policy might cost a few hundred pounds a year – but could save you thousands should something go awry.
Who Might Need Professional Indemnity Insurance?
You may need to get professional indemnity insurance if you work as a:
- Doctor or nurse (in the NHS, a surgery will usually provide this, though private doctors may need to arrange their own and it is important to check that it is in place.)
- Personal trainer
What does Professional Indemnity Insurance Cover?
Professional indemnity insurance can cover your business for compensation claims made by a client because of an error that you have made. The mistakes it covers could include:
- professional negligence.
- unintentional breaches of copyright or confidentiality.
- loss of documents or data.
- defamation or libel.
It can help to cover the cost of:
- mistakes you make in your work that result in a client losing money or business.
- Advice or consultancy undertaken that resulted in a loss of money or business for a client.
- Losses to a third party through you sharing information you shouldn’t have.
- Damage to the reputation of another company due to your work or advice.
- Losses for a third party because you’ve accidentally used copyright-protected material.
- Losses resulting from things you say or write about a client/ business.