Professional indemnity insurance covers professionals who give advice or offer professional services to other businesses or individuals. In the event that your client considers that your advice has caused financial troubles or has damaged their or their company’s reputation, they may consider bringing legal action against you to recoup their losses.
Professional indemnity insurance is not a legal requirement. However, it may be worth considering if you feel you are in a position where your advice or services could be held responsible for problems facing your client’s company. If you are unsure of whether you need this or not, please contact Bollington for more advice.
An example of when you might need professional indemnity insurance is if you give advice to one of your clients, and then over time this recommendation causes financial loss. The company may decide to hold you responsible for their financial problems. They could then bring charges of professional misconduct against you. You may have done nothing wrong, and the company may simply be looking for somewhere to lay the blame, and as an external advisor you are a good target. However, sometimes we do make mistakes, especially those professionals with a heavy workload who may simply overlook something which later causes problems.
Regardless of the reason for the claim being brought, with professional indemnity insurance you can rest assured that you are protected in the event of action being taken against you. Without professional indemnity insurance you could be liable for both legal costs as well as any damages.
However careful you are, accidents can happen, mistakes can be made. These can include data loss or loss of documents. In some cases, libel or slander charges can be brought against professionals. In other cases, there have been unintentional breaches of intellectual property rights. With professional indemnity insurance you are covered should any of these occur.
Professional indemnity insurance is available to a range of professionals, including financial advisors, business consultants, IT consultants, marketing consultants, and any other business that offers advice to clients. If you think you could benefit from the extra protection brought by professional indemnity insurance, contact us and we can discuss your business with you and find the right fit for your needs.
We have many decades of experience in the insurance industry. Over this time we have built up an extensive range of available covers and with our buying power we are in a position to offer the very best value professional indemnity insurance.