Professional indemnity insurance covers your business if someone makes a claim against you because they found an issue with the work you did for them, or advice you gave. Someone might try to sue you, for example, if you or one of your staff made a mistake which caused them damages. How would you cover the legal costs?
An example of Professional Indemnity…
One of your employees has accidentally sent an invoice containing confidential client information, addressed to a different client. The client that the invoice was meant for is now suing you for breaching their confidentiality.
What did the insurance cover?
In this case, the insurance covered the professional indemnity claim total cost of £35,000, including legal costs.
What didn’t it cover?
An excess of £250, as part of the claim you pay, and any other costs for damaged reputation or a loss of future contracts.
Do I need professional indemnity insurance?
It’s important to consider getting Professional Indemnity cover if your business gives advice, offers a professional service, or handles data or intellectual property that belongs to a client or a business. By taking out this kind of insurance, you are protecting yourself against the cost of a claim for negligence or a mistake that costs the client money.
Claims could happen at any time, even if you’ve done nothing wrong. If someone made a false claim against you, do you have the funds at hand to pay legal fees? Professional indemnity insurance can help protect you and your business against this type of risk, so you can concentrate on running your business.