Professional Indemnity Insurance

Professional Indemnity Insurance, or PII, protects business owners if a client or third party has suffered loss or damage because of negligent services or advice provided. A claim can be brought against you even if you provided the service or offered advice for free. PII covers both you and your employees against claims, so many businesses across a range of sectors take out a PII policy in addition to the standard Public and Employers’ Liability. PII is also a tax-deductible allowance expense.

What does Professional Indemnity Insurance cover?

Professional Indemnity covers costs that are the business’s responsibility if a claim arises, including legal fees, expenses, compensation, and any other cost that arises for the defense. PII cover is offered on a claims-made basis, which means insurers will only cover you if claims are made during the term of your policy. Many brokers will advise you to take out a run-off policy when you retire in case a claim arises after you have stopped working. Claims that are covered include:

Breach of confidentiality
Defamation
Breach of copyright
Loss of documents
Bodily injury (breach of professional duty)
Dishonesty of employees
Negligent misstatement of misrepresentation

It does not include claims caused by computer viruses, so you might need to consider taking out a Cyber insurance policy if you store any form of information on a system.

Do I need Professional Indemnity Insurance?

If you offer your knowledge, skills, and advice or handle people’s information and intellectual property, you should strongly consider taking out Professional Indemnity, even if you are self-employed. Some professions are required to have PII by their professional bodies or regulators, which include:

Some clients may not work with you if you do not have PII, regardless of sector.

How much does Professional Indemnity Insurance cost?

Like many policies, the cost of a Professional Indemnity policy varies widely. They cover anything between £2 – 5 million, with how much you take out depending on a variety of factors such as:

The type of work you do and the clients you work with
Projects you are working on or with
Size of business
Financial impact a mistake on your part would have
Type of risks you face.
Whether you provide consultancy or advice

It is important to be honest with your broker, as incorrect cover could lead to catastrophic financial loss.

Why choose Konsileo for Professional Indemnity Insurance?

Our Brokers have years of experience dealing with a wide variety of businesses and their unique Indemnity needs. Our access to a multitude of markets and products means that we can tailor policies for each individual business, regardless of size or sector.