Professional Indemnity Insurance is an important type of business insurance, designed for businesses that give advice or provide a professional service to clients. It can cover compensation claims if legal action is brought against you by a client for making an error that leads to financial loss.
Professional Indemnity Insurance covers the above, whereas Public Liability Insurance covers physical damage to a third party property or person.
It provides cover for financial loss caused by wrongful advice or services. If you are providing advice, consultation, or design services it is recommended that you have Professional Indemnity Insurance. You may also be required to hold Professional Indemnity as part of a contract with a principal contractor.
It is not an insurance product required by law and depends on the type of services provided by the company. Professional Indemnity Insurance is prudent when it comes to businesses offering a professional service such as accountants, solicitors, consultants, architects, etc.