Professional Indemnity Insurance
Essential Professional Indemnity Insurance Protection For Professional Advisory Businesses
Professional Indemnity Insurance (PII) is the single most relevant insurance you and your professional advisory business can arrange. When you give advice and provide professional services to your clients, you will be exposed to claims from them.
Why Do I Need Professional Indemnity Insurance
Legally, you will be required to exercise whatever degree of skill and care is reasonably expected of a competent practitioner working in your profession.
Commonly claims arise when a client suffers a genuine financial loss because of an error in the advice and services you have provided them with. Spurious claims are increasingly common if a client wishes to avoid payment of your fee by alleging that your advice and services were defective even when they were not.
With the right Professional Indemnity Insurance cover in place, your policy will protect you from claims whether they are genuine or spurious in nature.
A policy should pay the amounts that become payable for awards and compensation plus any legal defence costs that are incurred in the defence of a claim.
Certain professional bodies will impose mandatory requirements upon their members in respect of the arrangement of this type of insurance. Professional Indemnity Insurance is absolutely vital and an important business tool that you cannot afford to trade without.
You need to understand how Professional Indemnity Insurance cover works, and what you are getting for your money. We will spend time explaining what is covered by the policy and importantly what is not.
How Much Does Professional Indemnity Insurance Cost?
The cost of professional indemnity insurance varies from one client to another. The premium will depend on many factors; the main being your gross fee income, the type of work you undertake, the limit of indemnity you require and your previous claims history.