Professional Indemnity Insurance Explained
A reasonable definition of Professional Indemnity Insurance (Sometimes called PI) would be a Liability Cover designed to protect a business against claims made by the public for loss or damage to their property or person due to negligent advice or service. The most common professional liability lawsuits arise from:
- Negligence, omission or error.
- Unintentional breach of intellectual property rights (copyright, trademarks, broadcasting rights, Breach of Implied Statutory Terms under the Sale of Goods Act 1979 and Supply of Goods and Services Act 1982).
- Loss of clients’ original documents or data (these could be damaged, lost in the post or even stolen while in your care).
- Unintentional slander or libel.
- Unintentional misuse or breach of confidential information (Data Protection Act) or breach of confidence
If you run a business that provides expert knowledge, skills or advice to clients or customers in any way, you should seriously consider Professional Indemnity Insurance. If your professional advice fell short of expectations and result in financial loss or damage to a client, you could face a claim.
Typically, Professional Indemnity Insurance will cover you for any compensation payouts that might need to be made. Additionally, cover can be arranged for legal costs as part of the policy.
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Professional Indemnity for the professions
Typically, professional service businesses such as accountants, solicitors, architects and chartered surveyors will need it, as would most medical professionals – nurses, doctors and dentists, to list a few examples.
Even if you retire or leave the profession, you can still be sued for up to 6 years after the event – you can buy a ‘run-off’ policy to cover you for this period.
Why Use Buckingham Insurance for your business insurance cover?
Buckingham Insurance has been providing businesses across Derbyshire and South Yorkshire with invaluable, trusted advice and service for almost 40 years. With a heavy investment in staff training and leading technology, together with good old fashioned close relationships with both our Insurer partners and clients, we pride ourselves on competitively priced, quality cover backed up by first rate service.