If your work involves offering knowledge or advice to a third party, whether that’s provided for free or paid, you should have professional indemnity insurance.
The rise in allegations around breaches of professional duty has risen sharply. If you or your company offer a professional advisory service, then you could be liable.
Let SP Insurance Services Limited find the right professional indemnity insurance for your business.
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Who needs professional indemnity insurance?
Professional indemnity protects you and your company against any breach of professional conduct. This type of cover protects you in the event of mistakes or poor advice. This can include a breach of copyright, mishandling of confidential information, or giving incorrect advice to your client—pretty much any advice where the consequences result in financial loss or professional damage.
Common professions that require professional indemnity insurance include:
- Solicitors
- Financial advisors
- Mortgage or insurance brokers
- Marketing agencies
- Consultants
- Freelancers
- Accountants
- Architects
- Engineers
Any One Claim vs Aggregate Cover
Any One Claim
If you have an Any One Claim policy, you can make as many claims in the course of one year as required, up to the amount specified per claim.
Aggregate Cover
A policy that is ‘in the aggregate’ means that you can make as many claims in the course of one year until you have reached your specified limit in the policy schedule.
Jurisdiction limits
Jurisdiction refers to which country and law system will be used should a claim occur; for example, you could be working in Europe from the UK; however, if the jurisdiction is the UK, then the claim will need to be handled in the United Kingdom and, if necessary, handled by the UK justice system.
Retroactive date insurance
A retroactive date is the date from which professional indemnity insurance has been continuously active. It does not matter whether you have changed insurers. Any claims that occur before the retroactive date will not be covered by the insurance policy.
Frequently Asked Questions
What does professional indemnity insurance cover?
Risks that are covered by professional indemnity insurance include loss-causing advice, certification errors, inaccurate design work and negligence that has led to financial loss or reputation damage for a third party.
How much professional indemnity insurance do I need?
If you’re not sure how much cover you need, it’s worth checking the information provided by any regulatory bodies you’re part of.
Do you need public liability with professional indemnity?
Not necessarily. Professional indemnity is not a legal requirement, but it is recommended if you’re providing either design and/or advice. If a client insists that you have professional indemnity to secure a contract with them, then you will have to weigh up the costs of purchasing this cover. If you do need both, you can potentially obtain a package policy. For instance, if you’re an IT consultant, you could benefit from getting an insurance policy that covers public liability, employers’ liability, and professional indemnity.
