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Professional Indemnity Insurance - Overview |   |
Professional Indemnity insurance covers small business people who provide specialist advice to other companies. People who are in the business of selling their skills or knowledge may wish to be protected in the event of a negligence claim as a result of services they have provided to a third party.
PI insurance will cover the costs of any compensation sought by a client as a result of negligence, and should also cover any legal costs.
Many professionals take out PI cover, others are obliged to take out cover (such as accountants, lawyers of financial advisers).
Knowledge-based professionals, such as IT contractors, consultants, designers and engineers are increasingly likely to take out professional indemnity insurance, and some clients may insist that cover is in place before hiring your services.
What does the Professional Insurance cover?
- A negligent act, or error made duing the course of your duties
- Unintential infringement of intellectual property rights
- Loss of data or documents entrusted to you
- Unintential breach of confidence
- Unintential libel or slander
- Dishonesty
Further Information
- For a more in-depth PI Guide and for access to competitive quotes, try our Hiscox Guide to Professional Indemnity Insurance
- British Insurance Brokers' Association
Posted April 12, 2006
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