What is professional indemnity insurance and what does it cover?
Professional indemnity insurance is there to pay for legal defence and costs if a client takes you to court for supplying inadequate advice, designs or services which results in financial loss for them. The insurance also pays a sum of money to the client to compensate for their losses.
Who needs professional indemnity insurance?
Anyone who provides professional services, advice or designs should consider taking out professional indemnity insurance.
Mistakes do happen and if a client alleges that you have made a mistake causing them financial loss, professional indemnity insurance will pay your legal costs and will also cover any financial compensation awarded to your client.
Is professional indemnity insurance compulsory?
For some professions, such as accountants and financial advisers, it is compulsory to hold professional indemnity insurance. For other professions, such as facilities managers and building services consultants it may be a requirement of a work contract or being a member of a professional body.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance varies depending on your occupation and other factors, such as your annual turnover and the size of projects you work on.
If you want to get an idea of what it might cost for your business, you can very quickly and easily get a quote with us online.