The need for professional indemnity (PI) cover has grown over the past several decades as more people enter service-based professions.
While PI insurance still covers "traditional" professionals, such as doctors, solicitors, accountants and architects, a whole new market of professionals now need to consider PI cover.
PI insurance safeguards against catastrophic losses in the event of a legal action due to a negligent act, error or omission by the professional. In addition to claims of error, omission or negligence, PI insurance may also protect against slander, libel and breach of contract.
Who Needs Professional Indemnity Cover?
Whether a traditional or new professional, PI provides cover for anyone who gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Professionals such as accountants, engineers, IT consultants, software developers, planners, estate agents and contractors are prime candidates for carrying PI insurance.
The main reasons professionals seek out PI insurance include the following:
- It is legally required for their profession (Solicitors Act 1974).
- It is a regulatory requirement. Many professional organisations, such as the Architects Registration Board, require their members to have PI insurance before they can practice.
- It is contractually required by the customer.
- It provides extra protection against potential legal costs and expenses.
There is no standard policy when it comes to PI insurance which is why it’s best to speak to an experienced broker who understands your company and can knowledgeably design a policy to meet your needs.
Contact Willis Insurance and Risk Management at 028 9032 9042 to learn how PI insurance fits into your total risk management programme.
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