Professional indemnity insurance, also referred to as ‘PI Insurance’ or ‘PII’, is a requirement of many membership bodies/organisations and increasingly a contractual prerequisite for many individuals/firms.
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While PI insurance still covers ‘traditional’ professionals, such as accountants, architects, surveyors etc, a new market of professionals 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 catastrophic 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.
Insurance2day have specialist, bespoke, in-house professional indemnity insurance schemes covering, many of the following occupations:
- Business Consultants
- Careers Advisory Service
- Company Registrar/Company Search Agents
- Computer Consultants
- Computer Programmers
- Corporate Identity Consultants
- Counselling Service
- Data Processors
- Energy & Fuel Efficiency Consultants
- Engineering Design Consultants
- Graphic Designers
- Handwriting Expert
- H.R. Consultants
- Health & Safety Consultants
- Immigration Consultants
- Interior Designers
- Interim Managers
- Inventory Clerks
- I.T. Contractors
- Landscape Architects
- Management Consultants
- Marketing Consultants Management Training
- Market Research Consultants
- Ofsted Inspectors
- Personnel/HR/Training/Careers Advisors
- Procurement Consultants
- Public Relations Consultants
- Quality Assessors (including Investors in People)
- Secretarial service
- Small Business Advisory Service
- Software Consultants
- Telecommunications Consultants
- Training Consultants
- Web Site Designers
The importance of adequate PI insurance really can’t be underestimated.
The need for professional indemnity cover has grown over the past several decades as more people enter professional service-based occupations.
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 PI 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 practise.
• It is contractually required by the customer.
• It provides extra protection against potential legal costs and expenses.
PI Policy Overview
PI insurance offers protection for service errors, contract performance disputes or other professional liability issues. These policies can include legal defence costs, damages and compensation due to professional negligence, which can be substantial.
PI policies generally have both a claim limit and an annual limit, which is based on the insured’s exposure. The claim limit is the maximum amount that will be paid for any single event, and the annual limit is the maximum that will be paid in any one year. Also common extensions include continuation of cover, liability for loss of documents, and court attendance and staff disruption costs.
There are common exclusions typically found in PI policies, including liability for non-financial losses and intentional, dishonest or fraudulent acts by the professional.
PI Run Off Cover
Because PI policies are claims-made policies, once they expire, they will not cover any more claims. That leaves you exposed years into the future after you retire or stop trading for mistakes you made in the past, which is why you should consider run-off cover.
There are many different forms of professional liability insurance and various factors to consider when purchasing PI cover for your business. Contact Us now to discuss your requirements further.