8th October 2019
Who Needs Professional Indemnity Insurance?
In general terms, anyone who supplies advice or services, such as consultancy, should consider professional indemnity insurance.
Historically Professional Indemnity Insurance has been the domain of businesses like architects, journalists, solicitors, surveyors, engineers, accountants and financial advisers. However, in recent years, new professions such as e-commerce, programmers and internet service providers have found that Professional Indemnity Insurance is an essential part of any business risk management strategy.
What's Covered By Professional Indemnity Insurance?
Professional Indemnity Insurance, also known as PI insurance or professional liability insurance protects you if claims are brought against you for providing advice or a professional service to customers/clients, as well as for handling client data or intellectual property.
Which basically means that it protects you if you are negligent or make a mistake that causes a financial loss to a client’s business.
Some areas that could lead to legal proceedings are:
- Intellectual property: unintentionally infringing on copyrights, trademarks, broadcasting rights, any act of passing off.
- Negligence: or breach of duty of care
- Dishonesty: liability arising from the theft of your client’s money.
- Documents/Data: damaged, stolen or lost data/documents belonging to your clients.
Professional Indemnity Insurance will pay all reasonable costs incurred in the defence (e.g. legal fees) or settlement of such claims arising from the above.
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