Professional Indemnity Insurance
Cover for most business insurance needs (including motor) from over 100 UK insurers. Our guide to business insurance will tell you more or compare online quotes from leading insurers
Professional Indemnity Insurance
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Overview
If your business provides advice or consultancy you have a responsibility to your clients and any breach of that responsibility could lead to a claim against you, causing serious damage to your business.
Professional Indemnity Insurance will protect you against having to pay damages and legal costs should a claim arise against you.
Cover includes:
• Breach of professional duty
• Breach of copyright
• Breach of confidentiality
• Libel and slander
• Loss of documents
Arranging cover is simple and costs as little as £130 per annum.
How Professional Indemnity Insurance Works
Professional indemnity insurance is designed to cover businesses in the event that they are pursued by a third parties who claims that they have suffered a loss as a result of their professionals negligence.
An example of how a claim could arise is as follows:
For instance an advertising consultant put the wrong telephone number in an add and they sued them for loss of income and damage to their brand in this particular case the claimant was awarded £25,000 in compensation. Luckily this person had insurance to cover them.
The definition of professional indemnity insurance could be:
1. Indemnity to a professional man or firm against legal liability to compensate a third party who has sustained injury, loss or damage through breach of duty.
2. See the below for a list of claims examples and how much compensation had to be paid out:
• A management accountancy practice failed to alert their client to losses resulting from an employee falsifying sales returns. Compensation awarded against them £14,000
• A translator made an error in a technical brochure, resulting in reprinting costs and damages for the client's loss of business. Compensation awarded against them £20,000
• A graphic designer adapted a drawing from a text book for use as a logo, and was sued for breach of copyright. Compensation awarded against them £35,000.
With professional indemnity insurance starting from £136.50 it's a pretty inexpensive policy and could save you thousands like it did the companies above.
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