Professional Indemnity Insurance
Professional Indemnity insurance (PI) protects your business from a claim made by a client who has lost money due to your work. It covers your company against mistakes that lead to poor advice, negligence and breach of data or confidential information.
The policy protects you from compensation claims, legal fees and expenses to defend any claim. Compensation can vary greatly depending on the severity of claim. Although it is not legally required many large companies will ask for a PI policy to be in place before outsourcing work to contractors.
In some professions PI insurance may be required to join a professional body as a member such as:
- Chartered surveyors
- Financial advisers
- Healthcare workers
Claims can only be made during the life of the policy and not retrospectively.
PI policies can cover areas such as:
- Breach of professional duty
- Unintended breach of confidentiality
- Loss, theft or damages to documents
- Malicious, fraudulent or dishonest act against a current or former employee
- Unintended breach of intellectual property rights