What is Professional Indemnity Insurance? Why your business will need it, and how we can help.
Professional Indemnity Insurance covers the legal liability arising from professional services in the event that a third-party claims to have suffered a loss as a result of professional negligence by an insured party.
Why do companies need Professional Indemnity Insurance?
When a business or person provides services such as design, advice, or offers their skills or knowledge in a professional capacity, they transfer the risk of that professional service or advice through Professional Indemnity Insurance. Professionals may owe a duty of care to anybody who might reasonably rely upon the service or advice they have provided. Clients of these professionals expect high standards, and in today’s increasingly litigious society, clients very quickly resort to legal recourse if they feel standards have not been met.
Professional Indemnity Insurance provides the business or person with protection against losses, which are a result of the professional’s negligence. This can cover the costs that result in defending a claim that may not be successful, or the actual loss (i.e. damages). Either way, managing the risk in this way provides peace of mind, as well as giving clients protection