This might be the year you launch your own business, in which case it is essential you take all the necessary protections first. For some companies, this might include getting professional indemnity (PI) insurance. To find out if that includes you, read on.
What is professional indemnity insurance?
Professional indemnity insurance protects businesses having to pay for legal defence or compensation if there is a claim made for a bad piece of advice, negligence at work, or a dodgy service that has resulted in financial loss for the client.
Unbiased.co.uk explains: “In the event of being sued, these professionals need to pay a lawyer to defend them in court, as well as the costs associated with rectifying and reprinting.”
Do you need it?
Therefore, businesses that might need it include those that provide a consultancy service, in case there is a mistake in the advice given; handle data, in the event of a data breach; or offer expertise and there is an error in the calculations or plans.
What kind of professionals require PI?
If you are still uncertain whether you need PI, Lloyds Bank has published a long list of professionals that should take it out.
These include business or IT consultants, accountants, architects and surveyors, engineers, interior designers, town planners, and those involved in education or risk management.
What does it not cover?
There are some things PI does not protect against, so you might need to take out other policies for better protection.
For instance, PI does not cover damage to a client’s reputation; employer liability and public liability.
For a chat about professional indemnity protection or other business insurance policies in Stafford, get in touch with us today.