Who needs professional indemnity insurance?
Professional Indemnity Insurance is a cornerstone of what we know as Business Insurance. It operates alongside other aspects of Business Insurance such as Employers Liability and Public Liability, to give businesses the comprehensive cover they need to mitigate the damages of things like ruinous claims and lawsuits.
Employers Liability and Public Liability Insurance are fairly explicit of their intentions in their very name – the liability towards the public and your own employees which we take on when starting up a business. Professional Indemnity on the other hand is rather more esoteric, but still very simple when you understand its motives.
Professional Indemnity Insurance is often most closely associated with the types of business which provide a service or give advice: solicitors, accountants, financial services, consultancies, media groups etc. That said, each business is unique and most companies provide services which can be liable to legal reproach, including things like building and construction - so each company should assess individually whether it needs Professional Indemnity Insurance.
One of the main reasons we need Professional Indemnity Insurance more than ever (or PI as it’s sometimes known), is the fact that we live in a society where legal claims are actively encouraged so the trap is even greater. The best way to avoid these claims of professional negligence, defamation of character, copyright infringement, loss of data - is to take due care but even for the most conscientious business it can be surprisingly easy to slip up. PI covers things like legal costs and various expenses, as well as subsequent compensation and costs.
For a very small fee you can get excellent Professional Indemnity Insurance. Companies like Endsleigh offer policies from as little as a few pound a month. Take a moment also to look at the levels of cover offered on their site www.endsleigh-business.co.uk, and it becomes clear that the trade-off between this small outgoing expense and the prospect of avoiding the financial ruin of extensive legal costs makes PI a wise investment indeed.