Professional Indemnity Insurance


If you are a professional person then it is likely that you have studied and worked for many years in an effort to build the required experience and attributes needed for your chosen profession. Unfortunately, sometimes mistakes happen, either caused by you, one of your team members or employees. If allegations of poor service, design or inadequate advice are made by one of your clients, then they could pursue you or your business for compensation.

Professional Indemnity Insurance Policies

Professional indemnity insurance will provide cover for legal costs and expenses in defending a claim, as well as compensation awarded in court, payable to your client. Types of claims that may be made against you are:

  • Professional negligence such as making mistakes in your work or giving bad advice.
  • Data breaches and lost documents, whether intentional or unintentional, even if you have been a victim of cybercrime.
  • Breach of contracts, confidentially and copyright, through infringement.
  • Libel and defamation by making inaccurate or false representations against your clients

Is Professional Indemnity Insurance Mandatory?

In terms of legality, no it is not mandatory, however, many professional regulatory bodies will insist upon it before you start practising, such as legal practitioners and accountancy firms. In addition to this, it is highly unlikely that anyone tending for work, consulting or working as a contractor will be awarded any contracts without appropriate professional indemnity insurance.

Not only does professional indemnity provide you with protection, it also gives your clients peace of mind and demonstrates your professionalism.

It may not be a legal requirement in most cases but it could save your thousands should anyone try to make a claim against you.

Who needs Professional Indemnity Insurance?


Most business relationships are forged from strong ties, unfortunately, though, business is business and can change like the weather, especially if a mistake has been made that has cost your client dearly.

The definition of a ‘profession’ or a ‘professional’ is wide but its usual meaning is someone that has studied and taken professional qualifications, in order to be qualified to undertake their role. Training can take years and usually involves undergraduate degree level studies, or higher. Most professionals are usually members of a professional body that set standards and ensures compliance with those standards. In some instances, professionals are also guided by moral and ethical guidelines.

Professions that can benefit from PI cover include:

  • IT consultants
  • Teachers, lecturers and professors
  • Doctors and Nurses
  • Designers
  • Architects
  • Accountants
  • Solicitors, Lawyers and Barristers

What Limit of Professional Indemnity do I need?


When trying to anticipate the level of cover you require you should consider the following aspects;

  • What has your client instructed? They will usually set a minimum value of cover required.
  • In a worst case scenario, what compensation could be awarded against you?
  • What is the potential cost of a legal defence to represent you in court?
  • How big are your clients?

How much does Professional Indemnity Cost?


As with all insurance, it is impossible to give accurate examples the cost of the premium for professional indemnity insurance, as there are so many variables. Similarly to the variable that dictates the level of cover you require, the following will have an impact on the cost of your policy.

  • In what area of expertise is your profession? Some are more high risk than others.
  • How big is your business?
  • How many employees do you need to cover?

You should always provide as much information as possible so that your broker and insurer have a clear picture of what you do. This may aid you in achieving a reduced premium and as a minimum, it will ensure that you have adequate cover should someone wish to make a claim.

If you are working on a specific project, then it may be worthwhile taking out a bespoke policy. You could also achieve a discount if you amalgamate other insurance policies such as buildings insurance, employer’s liability and public liability.

Insure 24-7 can help you understand the differences and which would be better.

Contact for Professional Indemnity Insurance Quotes

If you feel that you would benefit from the protection offered by professional indemnity cover, or it is required by the Regulatory body overseeing your profession, then speak with our experienced brokers to discuss our policies in depth. We can offer professional indemnity insurance quotes that are both comprehensive and competitive, so don’t hesitate to contact us today.