Why do we need Professional Indemnity?
February 21, 2025
Why do we need Professional Indemnity?
Professional Indemnity insurance protects you against claims made against you where the claimant has suffered a financial loss due to negligent advice, e.g. if you're accused of providing poor advice or services that cause your client to lose money.
It can also include cover to protect the policyholder if they accidentally infringe on intellectual property rights, cover the cost to replace or restore any damaged or mislaid documents and provide protection against an accidental lapse in judgment resulting in a defamation or libel claim.
People need to buy professional indemnity insurance for various reasons.
- · If your business provides professional services, including expert advice to clients
- · It’s a contractual requirement in many industries
- · It's mandatory to comply with regulatory or licensing requirements for certain professions
- · It provides peace of mind to professionals
- · It protects your professional reputation and helps build customer trust
If you are an accountant, financial consultant, surveyor, engineer, or healthcare professional, you will likely need professional indemnity insurance due to requirements set by your respective industry bodies. Likewise, if you are a freelancer, contractor, consultant or provide services on a self-employed basis, it is worth considering professional indemnity insurance.
The types of claims that can occur are
- You're an IT consultant whose client incurs extra costs because you specified the wrong network updates and data was lost.
- You're a website designer using legally protected intellectual property, such as stock photography, without permission.
If you aren’t sure or need more help understanding the insurance coverage, you need, please give us a call at 01843 293614
