Professional Indemnity Insurance

What is Professional Indemnity Insurance?

Professional Indemnity Insurance, also known as Professional Indemnity Liability insurance is an insurance policy you’ll want to consider if you provide professional services to clients. Professional services for example can encompass advice, design or consultancy. You may also want to consider Professional Indemnity Insurance if you handle data belonging to client (individual or business) or work with a client’s intellectual property and perhaps speak to a Cornwall based Insurance Broker to arrange a quotation.

Professional IndemnityAny small business that provides a professional service can be challenged and therefore is vulnerable to a claim of negligence if and when the advice or service fails to meet a client’s expectations. If a client makes a claim against you for loss of money due to a mistake that’s where Professional Indemnity Insurance comes in. Your Public Liability insurance or Employers Liability insurance will not cover this type of claim.

What if I don’t have this cover?

Perhaps you have a Commercial Combined Insurance policy that doesn’t include Professional Indemnity Insurance and want to look into obtaining a quote?  This is where Insurance Broker Cornwall can help you.

Even if you haven’t done anything wrong the cost to defend yourself is likely to be high and this is where professional indemnity insurance can help protect you from these costs. Although it’s likely you will strive to provide the best service possible, people do make mistakes. That’s why arranging a suitable Professional Indemnity Lability insurance will give you peace of mind that your business is covered.

In the event a client claims that there is a problem with the work you’ve done for them a Professional Indemnity Insurance would typically cover the legal costs to defend you and in the unfortunate event that you are wrong, it can cover compensation payments to correct a mistake or settle a claim. Some Professional Indemnity Insurance policies offer optional extras, whereas others include enhanced benefits. These can include defamation, breach of confidentiality, loss of documents or data, data protection and copyright breaches.

An example of these include:-
Breach of confidence – where a client claims you have shared confidential or commercially sensitive information without their consent
Defamation – making false or damaging claims about a person or organisation
Infringement of intellectual property rights – probably the most relevant example of this is re-using content without permission from a website
Negligence – being careless in your work by making a mistake or giving bad advice

How much professional indemnity cover do I need?

It’s best to start with thinking about the risks your business could face and the maximum amount you’d need to pay out in legal fees and compensation or losses in a worst case scenario. Cover typically ranges from £50,000 to £5,000,000. Sometimes your customer or client will specify the level of Professional Indemnity insurance you will need to be able to provide them with your services.

If you have property then have a look at our Property owners Insurance Information Page.  Or contact us if you would like to arrange to speak with an Insurance Broker in Cornwall.


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