Professional Indemnity

Typically, the coverage for PI is as follows:

• Compensation payments (usually take into account client’s financial loss)
• Legal fees (if client claims against you)
• Unintentional breaches of confidentiality or copyright
• Loss of documents or data
• Bodily injury directly from negligence in performing duties
• Financial loss directly from negligence in performing duties
• Property damage directly from negligence in performing duties

A PI policy not only protects your company from the risks that entails from your business activities, but also gives yourself, your employees and your clients a peace of mind. When your employees perform their jobs, and rightly or wrongly are accused of misguidance and are sued for negligence, the legal costs can rise fast. Hence, a PI policy can help with compensation, defence costs and reputational protection.

Although PI is not required in all professions, those that offer a professional service, handle client's data or intellectual property are more vulnerable to lawsuits due to their clients' reliance on their duties. Such professions include, solicitors, accountants, architects, chartered surveyors, financial advisors and health care professionals. Furthermore, having a PI policy can be a source of attraction when hiring top tier job candidates.

There are a number of factors affecting the cost of purchasing a PI policy. This includes:

• Industry/Field of work
• Policy Limits
• Claims History

Deciding how much coverage you need for your PI policy requires careful analysis in terms of lawsuits possibilities from your scope of work and the extent it can implicate.

You may be unsure in how much policy limit you may need. With CHAZ, our team can take advantage of our deep experience and provide guidance on the optimum coverage for your business.