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Do others rely on your professional advice? When it comes to insurance, you can rely on ours.
If your business offers professional advice, any mistakes you make can lead to expensive compensation claims and even if you’ve done nothing wrong, the costs of defending actions from clients can be huge.
Be Wiser can help to protect your business by providing professional indemnity insurance that bears the cost of legal defence fees and claims for compensation. For many professions this insurance cover is a requirement of membership of a professional body and you are at risk if you provide professional advice, consultancy, an expert service or you handle data.
Our friendly advisors are on hand to help you find the best indemnity insurance quotes that will keep you and your business running smoothly. Give us a call today for a no-obligation quote.
The most common reasons for PI are listed below. By having indemnity (protection), you are able to cover the loss in current or future earnings or the cost of any damages or repairs required.
Professional negligence: a basic mistake in a piece of work done by a professional without their knowledge or intention. An example could be an estate agent who sells a property to a customer that turns out to be damaged. The client may demand compensation in order to pay for the repairs.
Loss of documents or data: the professional may be reliable to hold key information, documentation or certificates and there might be a cost involved to replace this.
Breach of copyright or confidentiality: a professional acting on behalf of a client gives away confidential information to a competitor or third party after agreeing not to do so. This may cause a loss in profit as a competitor steals an idea or gains valuable insight to increase their profits at the expense of the company.
Defamation: the professional publically speaks ill of an individual or company, damaging their reputation and causing a loss of business and revenue. An example of this could be a business that advertises the weaknesses of their competitor, even if they are not true. The competitor may be able to sue for defamation.
Professional indemnity insurance provides cover for your business if the professional advice you have given to a client causes a financial loss or burden. Also known as PI or ‘indemnity insurance,’ it is most common for service providing individuals and companies such as accountants, lawyers, engineers, doctors and consultants, to name a few.
Professionals will always try to give the best service possible but sometimes mistakes happen and the customer has the right to claim compensation. Indemnity insurance provides financial protection for any legal costs and expenses in order to defend the claim and pay for any compensation to rectify the mistake.
Indemnity insurance is focused on giving protection for the services you provide that have a negative impact on your client’s business. This is different to public liability insurance or employers’ liability insurance that offers protection to members of the public or your employees that are physically injured as a result of your business activity.
PI is also referred to as malpractice if it relates to the medical professions and is commonly called Errors & Omissions (E&O) if it refers to mistakes made by the practitioner.
Some regulatory bodies require individual and businesses to have professional indemnity insurance especially where advice or consultations are a key part of the business. It is not only a requirement of the professional as some companies may request to work with contractors that have PI in place.
It could prove more costly not to have indemnity insurance. If a customer of yours wants to take legal action on something you have advised, you could be required to pay thousands of pounds in compensation and legal fees to resolve the claim. By having insurance, you are able to protect yourself as much as possible and limit the cost if a claim is raised upon you.
Professional indemnity insurers typically offer levels of cover ranging from £50,000 up to £10 million. The amount of level you require depends largely on the size of your business and the financial risk that your work poses to the client.
A good way to calculate how much you cover you might need is to estimate what could potentially go wrong for the client based on your advice and how much it would cost to resolve the situation. For instance, if a dentist charges a customer for braces treatment but they unsuccessful after a number of years, the dentist could estimate how much he requires to make things right. On a larger scale, the company could factor in the cost of legal fees if the customer makes a formal claim.
Be Wiser is a professional indemnity insurance broker and we work with the leading insurers in the UK to provide the best quotes for our customers. We will assess the size of your business, a history of your claims and the risk to your customers in order to find the best quote for you. Our dedicated advisors are ready to take your call and can help you get protected today.