Why do I need professional indemnity insurance?
Professional indemnity insurance (sometimes called PI insurance) gives your business financial protection in the event of claims from clients for:
- professional error
- professional neglect
Professional indemnity insurance covers the cost of paying damages awarded to a third party, and also covers legal fees related to fighting a claim.
What occupations are covered by a professional indemnity insurance policy?
Professional indemnity insurance is designed for professionals who sell their knowledge or skills. Cover is available for many occupations, including:
- estate agents
- IT consultants
Is professional indemnity insurance cover compulsory?
Professional indemnity is a regulatory requirement for some professions, including solicitors, accountants, architects, insurance brokers and financial advisers.
For other businesses, having professional indemnity in place can help you secure new clients, who may insist that you have indemnity cover as a condition of doing business together.
Can I get short-term professional indemnity insurance cover to cover a short-term contract?
Professional indemnity insurance is underwritten on a claims-made basis, which means that a policy must be in place for you to make a claim. Therefore, if you finish a short-term contract it makes sense to keep your professional indemnity policy available for your next contract.
What does the term 'retroactive date' mean?
If you have been working without professional indemnity cover, we can backdate your professional indemnity insurance policy as long as there are no impending claims against you that you are aware of.
For example, if you carried out some work two months ago, but did not have professional indemnity insurance at that point, we could supply an annual policy with retroactive cover to include that work.