Professional indemnity insurance, also referred to as ‘PI Insurance’ or ‘PII’ is a requirement of many membership bodies/organisations. The ‘traditional’ occupations requiring professional indemnity insurance include accountants, architects, estate agents, solicitors and surveyors.
Over the past decade the number of businesses arranging PI Insurance cover has increase substantially, firstly, since many clients stipulate that cover be operational prior to the commencement of a contract and, secondly, due the increased awareness of the potential for pii claims in this increasingly litigious environment.
The protection afforded by a professional indemnity insurance policy is twofold, firstly, the insured’s client may not wish to have to rely on directly suing an individual or company in the event of a loss and, secondly, the policyholder can focus on conducting their normal business activities in the event of a claim as opposed to having to devote significant financial resources to defend any indemnity claims brought against them.
Professional indemnity insurance is important for anyone that gives advice during the course of their business activities especially companies operating as sole traders or partnerships. Businesses operating as limited companies or limited liability partnerships are afforded some degree of protection by virtue of their limited liability status however sole traders could find themselves personally legally liable in the event of a claim if no professional indemnity insurance cover is operational. PI insurance is a must in this litigious day and age. https://www.insurance2day.co.uk/professional-indemnity-insurance