Professional indemnity

You may want to consider buying professional indemnity insurance if you are in the business of selling your knowledge or skills. Professional Indemnity insurance is also referred to as PI insurance.

This cover is designed to protect your business against claims for loss or damage made by a client or third party if you make mistakes or are found to be negligent in some or all of the services you provide.

For example, as an architect you may be instructed to design a number of offices. After completion of the build, one of the offices suffers a major fire which totally destroyed the building. During investigations it is found that inadequate fire resistant material was used in the initial build. It could be alleged that you as the architect failed to specify material correctly and you could be liable for settling the claim. This total claim could run in hundreds of thousands.

There are many professions who must have Professional Indemnity in place in order to operate a certain type of business. This includes solicitors, accountants, architects, mortgage and financial advisors and insurance brokers. There are many other types of businesses that choose to have Professional Indemnity insurance including PR agencies, advertising agencies and marketing consultants.

It makes sense to speak to a qualified insurance professional who can advise on the correct levels of the cover that is appropriate for your business.