Advice on Professional Indemnity Insurance
What is professional indemnity insurance?
Professional indemnity insurance is an important type of business insurance, especially for businesses that give advice or provide a professional service to clients. It can cover compensation claims if a business is sued by a client for making a mistake that leads to financial loss.
What is covered under professional indemnity insurance?
Professional indemnity insurance covers financial loss, personal injury and property damage resulting from your negligent act, error or omission while you’re working for a client. … And it’s employers’ liability insurance that you need to cover employee claims for workplace injury.
Why do I need indemnity insurance?
Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you’re alleged to have provided inadequate advice, services or designs that cause your client to lose money.
What’s the difference between public liability and professional indemnity?
Public Liability and Professional Indemnity cover different types of risks. Professional Indemnity, on the other hand, protects against the risks associated with providing advice or recommendations to clients. For example, a customer could sue you for damages if it’s alleged that your advice has caused a loss.