Professional Indemnity Insurance, or Professional Liability Insurance, serves as a protection against legal expenses, costs, compensation, or damages incurred in the event of a claim against you or your company. If it is alleged that you have provided incorrect or inadequate advice, were negligent or in breach of your duties, or there is the claim of error or omission in your professional performance, you will certainly need Professional Indemnity Insurance.
The cost of litigation is high, whether you are guilty of the offence or not. In fact, the cost of merely defending yourself against a false claim can run incredibly high and many businesses will struggle to find these expenses.
However, the real cost of legal action against a company does not stop with lawyer’s fees. While Professional Indemnity Insurance does cover legal fees, there are other aspects that will surface which are not covered.
For example, the challenge of limiting business interruption costs, the toll that the case takes on the staff and management, and the potential damage to your professional reputation can be difficult to quantify – and will require your full attention.
Often, companies choose to settle a legal claim against them, simply to close the book on an unpleasant experience and get on with business. However, this tacit admission of guilt can dog the company for years to come, and damage the reputation and good standing of the management team. Professional Indemnity Insurance grants further legal avenues to ensure that your good name is not affected by a false claim.
Who needs Professional Indemnity Insurance?
Business consultants including IT, recruitment, financial, and marketing services; designers in the online space as well as interior and graphic services; dance teachers and fitness instructors; and even teachers or tutors can all benefit from PI Insurance.
Any company or person who gives advice or provides a service should seriously consider buying Professional Indemnity Insurance
If you would like to better understand how PI Insurance can benefit you, we’d love to assist.
Please fill in the accompanying form and one of our professional brokers will contact you.
This information should not be considered legal or financial advice and is for information purposes only. You should consult with a professional financial advisor to determine what may be best for your individual needs.