Professional Indemnity

If you business activities involve design work, consultancy or you supply any professional service; then you may need professional indemnity.  A third party could claim that an omission, negligent act or a professional mistake has damaged their business, when you had a duty of professional care towards them and their business interests.  Professional Indemnity Insurance covers your business from claims such as these that could lead to a potentially crippling claim that could damage you financially and damage your reputation.

If your business activities directly affect another person or their business, for example marketing, legal or financial advice, that result in financial loss, third party injury and/or damage you are at risk of business injury claims.

Below are some of the danger areas that professional indemnity insurance covers:

• Loss, damage or theft of client's data and documents.
• Dishonesty on the part of you or employees including theft of money.
• Theft or infringement of someone's trademarks, copyrights, broadcasting rights or intellectual properties.
• Negligence or violation of the duty of care.

There is no set rule for professional indemnity but many businesses will insist on a minimum level of professional indemnity before entering into a contract with you or your business.  This level will depend on the nature of your business, their business and the nature of services you have been contracted to provide for them.  The level required should be weighed alongside the potential financial impact you may have on your clients, should something not go accordingly.

It is always advisable to buy as much cover as you can afford.  Our business insurance specialists can help you decide on the right cover for your business.