Professional Indemnity insurance (PI insurance), provides cover for the legal costs and expenses involved in defending a claim, as well as compensation payable to your client if you are found to have given negligent advice or design in a professional capacity.
Certain professions, such as Financial Advisors and Accountants, have a legal requirement to have PI insurance in place. In most professions that provide advice or design as part of their service, there is now a expectation from the client that you will have PI cover in place.
You should consider PI for the following reasons:
- You provide an expert service
- In case you make a mistake in designs, plans, or calculations
- You handle people’s information
- You could face claims if you accidentally disclose data or infringe on a client’s legal rights
- Many clients will require that you have Professional Indemnity insurance in place before you can start working for them
- You might belong to a professional body or industry association where Professional Indemnity insurance is compulsory