The need for professional indemnity (PI) cover has grown over the past several decades. This is because more people enter professional service-based professions. PI insurance still covers ‘traditional’ professionals, such as doctors, solicitors, accountants and architects. However, there is a whole new market of professionals, who now need to consider PI cover. Whether a traditional or new professional, you can protect yourself. Your business and your reputation by investing in professional indemnity cover.
PI insurance safeguards against economic losses in the event of a legal action due to a negligent act, error or omission by the professional. In addition to claims of error, omission or negligence, PI insurance may also protect against slander, libel and breach of contract.
Who Needs PI Cover?
It is appropriate cover for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Professionals such as accountants, engineers, IT consultants, software developers, planners, estate agents and contractors are prime candidates for carrying Professional Indemnity insurance. The main reasons professionals seek out PI insurance include the following:
- It is legally required for their profession (Solicitors Act 1974).
- It is a regulatory requirement. Many professional organisations, such as the Architects Registration Board, require their members to have PI insurance before they can practice.
- It is contractually required by the customer.
- It provides extra protection against potential legal costs and expenses.
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If you have any questions about PI Insurance cover and whether you need it, get in touch with us today. Insurance2day can help you with any queries you may have. Alternatively, if you enjoyed reading this blog, why not take a look at another one: Why Are Property, Liability & Professional Indemnity Insurance Premiums Increasing?