Professional Indemnity

Your services are incremental to your clients. But what happens if your advice backfires?

What is Professional Indemnity Insurance?

Also known as Errors and Omissions (E&O), Professional Indemnity (PI) Insurance can be highly beneficial to firms that provide advice or professional service to clients. Should a lawsuit be filed against you by a client for enticing a deal that turns into a mistake that leads to financial loss, compensation can claims be covered and mitigate the damage. The policies can differ from one business profile to another but ultimately the coverage will protect you from financial implications from lawsuits.

What does Professional Indemnity Insurance cover?

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

How important is Professional Indemnity Insurance?

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.

Who needs Professional Indemnity Insurance?

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.

How much does a Professional Indemnity Insurance policy cost?

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.

Why CHAZ?

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.

Note: The content provided is for informational and educational purposes only. The coverage written may change without notice and may not be applicable to all situations and policies. Terms, conditions and qualifications are also subject to circumstance, supplementary material and underwriting. CHAZ Insurance Brokers Ltd. is not liable for any discrepancies should there be any. For more information, please contact us via the enquiry form below.