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Professional Indemnity Insurance is a critical safeguard for professionals who provide advice, services, or designs to their clients. This insurance is designed to protect against legal action taken for losses incurred as a result of professional negligence. It provides peace of mind, allowing you to conduct your business with confidence, knowing that you are protected if something goes wrong.
What is Covered:
Professional Indemnity Insurance typically includes coverage for:
Negligence:
Errors or omissions in the professional services provided.
Legal Defence Costs: Fees and expenses associated with defending a legal claim, including court costs and settlements.
Loss of Documents: Costs related to the loss or damage of important client documents in your care.
Breach of Confidentiality: Protection against claims of unauthorized disclosure of confidential information.
Defamation: Coverage for claims made against you for libel or slander.
Infringement of Intellectual Property Rights: Protection if you unintentionally infringe on someone's intellectual property.
Dishonesty: Coverage for claims arising from dishonest acts committed by your employees.
What is Not Typically Covered:
There are certain exclusions that Professional Indemnity Insurance generally does not cover, such as:
Known Circumstances: Any known issues or circumstances that could lead to a claim before the policy begins are typically not covered.
Criminal Acts: Intentional criminal acts or omissions by the policyholder are not covered.
Contractual Liabilities: Liabilities that arise from agreements that go beyond the duty of care under common law are generally not included.
War and Terrorism: Claims arising from war, terrorism, and similar activities are usually excluded.
Bodily Injury/Property Damage: While some policies may include this, Professional Indemnity Insurance typically does not cover claims for physical injury or property damage.
Insolvency: Claims related to the insolvency or bankruptcy of the policyholder are not covered.
Fines and Penalties: Fines, penalties, or punitive damages that are imposed by law are not covered.
The Broad Risk Difference
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"You First" Principle
Your business comes first. We align our services with your values and needs, providing expert advice and insurance protection that allows you to focus on what matters most—growing your business with peace of mind.
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Accountability
We take full responsibility for the services and recommendations we provide. Every action is designed to deliver results, fostering trusted, long-term relationships with our clients. Your satisfaction and security are at the forefront of everything we do.
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Expert Solutions
With over 15 years of experience, we specialise in delivering tailored advice and solutions to protect your business. We customise our offerings to your unique needs, ensuring comprehensive coverage and peace of mind.
Frequently Asked Questions
1. What is Professional Indemnity Insurance?
Professional Indemnity Insurance is designed to protect professionals against legal costs and claims for damages to third parties which may arise from an act, omission, or breach of professional duty in the course of their business.
2. Who needs Professional Indemnity Insurance?
This type of insurance is crucial for anyone who provides professional advice or services, such as consultants, architects, engineers, lawyers, accountants, and medical professionals. It's also important for businesses that handle client data or intellectual property.
3. What does Professional Indemnity Insurance cover?
It typically covers the cost of defending claims made against you, including court costs and any settlements or damages awarded against you. This can include negligence, loss of documents or data, defamation, unintentional breach of confidentiality, and infringement of intellectual property rights.
4. What is not covered by Professional Indemnity Insurance?
A: Generally, it does not cover intentional wrongdoing, known claims before the policy start date, contractual liabilities that exceed the duty of care under common law, claims arising from war or terrorism, bodily injury or property damage (unless specifically included), insolvency, or fines and penalties.
5. How much Professional Indemnity Insurance do I need?
The level of cover you need will depend on your profession, the size of your business, the contractual requirements you may have, and the potential risks you face. It's best to discuss your specific needs with an insurance broker who can advise you on the appropriate level of cover.
6. Is Professional Indemnity Insurance mandatory?
For some professions, such as law and medicine, it is a regulatory requirement. For others, it may be a contractual requirement or simply a prudent measure to protect your business.
7. How is the cost of Professional Indemnity Insurance calculated?
The cost is based on several factors, including your profession, turnover, level of cover required, claims history, and the risk associated with your specific business activities.
8. Can I get Professional Indemnity Insurance as part of a combined policy?
Yes, it's often possible to combine Professional Indemnity Insurance with other types of business insurance in a package tailored to your needs, which can be more cost-effective and convenient to manage.