What is PI (Professional Indemnity Insurance)? Why is it important for Industrial Professions?

Well, that’s a lot of intimidating words, hey? What exactly is professional indemnity insurance? Well, in this article we will be going through the basics so you have an idea of how to navigate this important area of insurance.

Professional Indemnity Insurance, also known as PI insurance, is a kind of business insurance that helps you in the event that an error in a piece of work done by you causes financial or reputational loss.

Are you in need of professional indemnity insurance Manchester? From consultants and accounts, designers, recruiters, construction workers, freelancers or any service-based professional industry. Professional indemnity insurance is helpful to a lot of different kinds of industries. It might be needed by a self-employed professional, for example, an accountant or a financial consultant, or by a larger company doing a specific kind of work. 

Businesses that benefit from or require PI insurance include.

Advisory roles: ie, give advice to clients

Offer a professional service

Look after data or other IP (intellectual property).

So, what does professional indemnity insurance cover? You will find it is applicable for a number of scenarios, including.

  • Professional negligence - giving incorrect information to a client or making a human error

  • Contract breach - If you infringe on intellectual property, copyright or registered trademarks

  • Defamation - In the event that you perpetuate or give support to statements of libel about a client or someone with a professional relationship

  • Lost, damaged documents - In losing or damaging documents that are in your care and responsibility

  • Breach of confidence - Sharing sensitive and confidential information without permission

  • Employee cover - if an employee commits a malicious act that harm’s your client’s business

How comprehensive does my professional indemnity insurance need to be?

Insurance will set premiums for professional indemnity based on factors like:

Your business contact -

 If your contract requires you to have professional indemnity cover, it will usually be specific as to the minimum amount of coverage that you require for your profession.

Your project’s value

Factoring the amount you are being paid, and work’s overall value

Involvement in professional and regulatory bodies

You can always ask regulatory bodies for guidance and advice when selecting.

How much do I need to spend on PI Insurance?

Insurers will set premiums for professional indemnity insurance depending of a variety of factors, this includes:

Business size and kind. The bigger the business, the more you have at stake when it comes to both finance and reputation loss. You'll generally need higher and more advanced levels of cover of your client is a large company

The nature of work: if you’re in a high-risk industry or role, then your insurers are like as not to charge considerably more in regards to premiums

Business insurance comparisons:

You can use a comparison tool and compare insurance quotes, this way you will be able to choose the best coverage for your specific need at the best price.

We hope this guide has filled you in on the basics of PI insurance, good luck in your search.