Do I need Professional Indemnity Insurance?
For a number of industries, Professional Indemnity insurance is compulsory. However, it isn’t mandatory for all.
Whether or not Professional Indemnity (PI) insurance is mandatory depends on your industry regulator. Accountants and Architects (as example) who are members of a chartered institute are likely to find that this type of insurance is compulsory. However, other industries do not see Professional Indemnity insurance as essential, but it should be considered. This is especially true for people and businesses whose profession involves them offering advice, recommendations or data/Intellectual Property handling.
Professional Indemnity insurance is a smart way of protecting yourself and your business from any successful claims of professional negligence made against you. If you weren’t to have adequate cover in place the repercussions of such claims could have huge impact on your reputation and business. This is because you will still be held liable for both parties’ legal fees and any compensation awarded.
If you work in any of the following professions you should consider purchasing Professional Indemnity insurance: Business & Management Consultants, Accountants, Self-Employed IT Professionals, Recruitment Professionals, Building & Construction Engineers, Designers and Estate Agents. This list isn’t exhaustive, so if your profession isn’t on here, you can still give us a call to see if we can help cover you.
The final question you need to ask yourself is, for the sake of an insurance premium, could your business and reputation survive such a huge potential financial loss?