Professional Indemnity Insurance
What does professional indemnity insurance cover?
You should consider taking out professional indemnity insurance if your business offers a professional service or gives advice to other businesses. Professional indemnity covers your business if you are negligent or make a mistake which causes a financial loss. The insurer promises to indemnify the professional against claims by clients or other persons affected by the professional’s activity. The insurer will provide an indemnity to professionals for damages which are awarded against them plus legal costs of defending the claim and for costs awarded against them.
Professional indemnity insurance is also known as PI insurance or indemnity insurance.
Who requires professional indemnity insurance?
The types of businesses that often take out professional indemnity include solicitors, architects, financial advisors, accountants, management consultants, IT consultants, and estate agents.
We would say that all businesses offering advice and a professional service should have PI insurance. We live in a litigious world where many businesses have claims brought against them, usually from unintentional errors which without the right protection could be disastrous for the business.
Choosing the right cover
There are many providers of PI insurance offering different levels of cover, wordings and endorsements. At Herald insurance we are here to guide you through the process of purchasing the right cover for your business. The cover needs to be very specific to your business activities and the policy wording needs to reflect this. With our panel of providers we can provide specific cover typical for your industry and we even offer bespoke wording to accommodate your activities.
We offer a minimum of £50,000 and up to a maximum of £5 million professional indemnity cover.
We can also provide public liability, employer’s liability, office contents, and business equipment cover to run with your PI insurance offering maximum protection. You also have the benefit in that if a claim should occur you have one insurer dealing with the incident making it a smoother process.