Professional indemnity insurance is not something that all businesspeople need to consider. However, it is vital in many industries and in particular fields of work. Professional indemnity insurance is sometimes known as PI or professional liability insurance too. It covers the legal costs and compensation incurred if you are alleged to have provided poor advice or services resulting in a loss for your client. This loss is almost always related to money, but some clients may claim for reputational damage or similar too.
Do I Need Professional Indemnity Insurance?
In most cases, professional indemnity insurance is a choice. However, in some industries it may be a requirement to join particular industry bodies. You may not be able to join the associations and organisations which most reputable people in your sector will be members of, making it harder for you to find business.
Even if you do not have to have professional indemnity insurance you could be liable for huge costs should a case be won against you. Very few businesspeople have the money available to cover the costs of a court case and compensation, so insurance really is vital in some sectors. Professional indemnity insurance should definitely be a serious consideration if:
- You provide design services
- You provide advice or professional services
- For protection in case of mistakes or negligence in your work
- You work as a contractor or freelancer and your clients expect insurance in place for contracts
- Your industry body requires insurance to become a member
Some of the most common business areas where you may need to consider professional indemnity insurance include:
- Graphic designers, architects and interior designers
- Management and business consultants
- IT professionals and consultants
- Engineering contractors and technical contractors
- Recruitment consultants
- Tutors and private teachers
- Fitness service providers such as personal trainers and yoga instructors
Arranging your Professional Indemnity Insurance
The level of indemnity insurance cover you need will differ dependent on your business. Discussing your options with our team at Just Quote Me will ensure you have a range of quotes and companies to choose from. Comparing insurance quotes gives you the opportunity to ensure you get the right level of cover for your needs.