Professional indemnity insurance - what does it cover you against?

PI insurance protects your business against claims for loss or damage by a client or a third party if you have made mistakes or are found to have been negligent in some or all of the services that you have provided.

These are just a few examples of instances when a company may need to call on its professional indemnity policy:

If you have demonstrated negligence while providing your service. For example, if you are a website manager managing a client’s site and you accidentally delete an important webpage, a claim could be issued against you for any online revenue lost over that period.
If you accidentally infringe on intellectual property rights. For instance, if you are a publisher and someone believes the content you’ve printed is replicated, or that it heavily borrows ideas from previous work, you could end up being liable for large compensation fees.
If you lose or damage important documents given to you by a client. Many professions operate in busy offices where, from time to time, files can go missing. While you can’t always safeguard against accidents such as these, you can still protect against the financial repercussions with a professional indemnity policy.
If your company is accused of libel or slander. However careful a company is, when a company is dealing with a range of people there is always a risk of being accused of libel or slander. Even a simple, seemingly harmless publication such as a blog could get your company in trouble if someone takes offence or is damaged in some way by your comments.

Remember, it is advisable that you examine the terms of any professional indemnity policy before you make a purchase as the extent of cover can vary between insurers.

Covered in this guide

Part 1: Introduction

Part 2: Who needs it?

Part 3: What does it cover?

Part 4: Things to consider

Constructaquote.com is a trading title of Moorhouse Group Ltd which is authorised and regulated by the Financial Services Authority. The Financial Services Authority's Register can be accessed through http://www.fsa.gov.uk/Pages/register Reg No 308035.

Home |Sitemap | Accessibility | Terms & Conditions

Products & Services

Liability Insurance – This insurance can provide you with employer’s liability and product liability insurance. We offer a highly competitive standard package with optional extras.
Public Liability Insurance – Public liability is essential insurance for many businesses, especially those working closely with the public. We offer cover of £1m, £2m, £5m, or more on request. Only pay for what you need.
Employers liability insurance - If you have employees working for you, you are legally obliged to have employers liability insurance. We provide you with £10m of employers liability so you can rest assured you’re fully covered.
Shop Insurance – Retail insurance is a package of policies covering employer’s liability, public liability, business interruption and building insurance. Retail insurance is important for any business with premises. We offer a range of policies from top underwriters.
Professional Indemnity Insurance – This type of policy protects your business against claims for loss or damage if you are found to have been negligent in your duty. This is particularly important if your company imparts professional advice. Our policies cover businesses for a range of circumstances and are very competitive.
Restaurant Insurance – Our restaurant insurance packages can be tailored to your specific business needs. We provide you with a range of restaurant insurance options, from liability and business interruption insurance, to money and glass cover.