Professional Indemnity

If your business provides advice or consultancy services in a professional capacity, you will be considered an expert by your clients. In today's increasingly litigious culture your clients will not hesitate to take legal action if they believe that they have suffered a loss as a result of sub standard service.

 

A Professional Indemnity policy provides insurance for your business in the event that a legal action is taken against you by a dissatisfied client, claiming to have suffered a loss as a result of advice you have given in a professional capacity.

 

Does this include me?

Traditionally, accountants, surveyors, engineers, solicitors and architects - the mainstream professions - were regarded as 'professionals'. However, today's reliance upon services provided by others and the increasing use of external consultants has increased the scope of this term.

 

A 'professional' is now generally regarded as any person who offers 'specialist advice or services'. This definition can include IT consultants, insurance brokers, graphic/interior designers, marketing, management or business consultants.

 

Threats that your business can be exposed to include:

  • Negligence or breach of duty of care
  • Infringement of copyright and intellectual property rights
  • Libel and slander
  • Loss or damage to documents or data belonging to your clients
  • Dishonesty of your employees

 

The risks you are most likely to face depend on the nature of your business.

 

Even the most reputable companies can find themselves in a dispute with a client over a mistake. Can you afford to take any chances with the business you have worked so hard to build?