What is Professional Indemnity (PI) insurance?
Professional Indemnity (PI) insurance is
The coverage is specifically intended to protect a professional against
which may arise out of an act, error, omission or breach of a professional duty owed to a third party in the course of your professional business.
What do we know?
Professionals are generally considered to be experts in their field and they are commonly held to have a higher duty of care than an ordinary person. If a professional makes a mistake or fails to render their services correctly in the course of their business and this mistake results in financial loss or injury to a third party (e.g. a customer), that customer may take legal action against them to recover their losses.
Approximately 10% of professionals suffer allegations of non-performance from their customers each year. These allegations may not have any substance but they will need to be defended. Defending against such an allegation is not only expensive but can cost the professional time and can damage their reputation. If things do go wrong the professional could be held responsible not only for their own actions, but for those of their partners, employees or volunteers.
A Professional Indemnity insurance policy safeguards professionals by providing cover against such claims, including the cost of defending the action. At Complete Online Insurance our incorporated legal practice stands ready to assist our customers.
A Professional Indemnity insurance policy provides cover not only for the Insured's business, but also any principal, employee, director, partner or related entity whilst acting within the scope of their duties.
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