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Professional Indemnity Insurance

Nowadays most contracts are awarded with the proviso that the consultant or business offering their services, must be able to confirm that they have a Professional Indemnity (PI) policy in place. Many local authorities, main contractors, banks, hospital trusts, education sectors, insurers and top 100 companies would not usually award their contracts without proof of Professional Indemnity Insurance. So it makes sense for consultants, businesses and professionals to obtain cover for this reason alone, however the main reason for purchasing your professional Indemnity policy should be for the protection it gives your company.

Cover details for Professional Indemnity Insurance policies

Professional Insurance agents Ltd offers its clients a choice of providers, so policy wordings do differ somewhat, however most policies would have a broad base that covers the same areas such as:

  1. Libel and slander
  2. Negligence – breach of duty of care
  3. Loss of data documents
  4. Malicious false hood
  5. Breach of confidentiality
  6. Dishonesty
  7. Unintentional infringement of intellectual property, copyright or trademark.
  8. Errors and Omissions

How does Professional Indemnity Insurance work?

The policy would react to defend you against a claim, made on you by your client, for example, if the client was unhappy with your advice, which they consider had caused them a loss, they may well appoint a solicitor to request a payment back from you for those losses. So your insurer would appoint a claims handler or a solicitor direct to defend your position in these matters, after all you may not be to blame for that client's losses at all.

The cost of that solicitor would generally be covered by the Professional Indemnity Insurance policy so you would not have to worry about defending yourself or appointing your own solicitors.

Once the claim had been noted to your Professional Indemnity Insurance, there would be assessments made as to how best to go forward with the claim.

If the claim went to court, again all the cost to defend you would be met by the PI Policy (less any agreed excess); in addition, if you were then to be found neglectful in you duties the policy would also pay any damages awarded up to the level of indemnity set.

So your Professional Indemnity policy will cover you for legal defences and damage award subject to the policy terms and conditions agreed at purchase (or endorsed during the policy year)