Professional Indemnity Insurance

Contents

  1. Professional Indemnity Insurance
  2. What is Professional Indemnity Insurance?
  3. Who Needs Professional Indemnity Cover?
  4. How Much Does Professional Indemnity Insurance Cost?
  5. Examples Of Where PI Cover May Help

Professional indemnity (PI) insurance protects firms and individuals who may face claims of professional negligence from third parties. It covers the cost of legal fees and, if necessary, the cost of compensation.

PI is sometimes confused with public liability insurance. However, public liability policies exclude claims that involve advice or services given for a fee. So whereas arguably any business should consider taking out public liability insurance, only those whose work risks serious financial cost to their client should consider professional indemnity.

One particularly important aspect of PI is that it should be seen as a long-term commitment. The period of cover needs to include the time that any claim is made, which could be years after the initial mistake.

Therefore, when switching PI cover between insurers, it's important to check that the cover does not have a 'retroactive exclusion' i.e. that it covers you for problems rooted before your current policy began, which subsequently come to light.

Business insurance is issued by Royal & Sun Alliance Insurance plc, which is authorised and regulated by the Financial Services Authority (Reg No. 202323). All offers subject to availability. For your protection, telephone calls may be recorded or monitored. Discounts based on prices available for like-for-like RSA policies.