You may decide you need professional indemnity insurance if your business gives advice, offers a professional service, or handles client data or intellectual property. Some professional bodies and regulators require that their members hold professional indemnity insurance.
When you’re deciding whether your business needs professional indemnity insurance, first check whether your regulator or professional body requires you to hold a policy. If you work in accountancy, architecture or chartered surveying, it’s likely that you’re obliged to have professional indemnity insurance.
You may also find that your client contracts require you to have a particular level of professional indemnity insurance.
Even if this isn’t the case, it’s quite likely that you will still decide that your business needs professional indemnity cover, both to reassure potential clients and for your own security.
It’s a particularly popular insurance for businesses that give advice, provide a professional service, or handle client data and intellectual property. This is because it can pay claims made against you for financial loss suffered by a client, perhaps because you’ve mishandled data or you’ve given the wrong advice. As a result, it’s bought by many business types, from IT consultants to designers to accountants.
In the following interview with Robert Hartley (ACII), we discuss the importance of professional indemnity insurance and the value it can have for your business. Although PI cover is not compulsory by law, it is required by certain regulatory bodies and often indispensable for professionals such as solicitors, accountants and architects.
Is professional indemnity something you should consider for your company? Watch the video below to find out.