How to Protect Your Business with Professional Indemnity Insurance

You may need to take out professional indemnity insurance to pay out for claims against you for instances where:

• You have given incorrect information.
• You are negligent.
• You have misrepresented a client.

Even if you are innocent of the claims made against you regarding the above, you could still be held liable. And you may still need to pay the litigation fees if these claims go to court. In such cases, professional indemnity insurance comes into play.

How Does Professional Indemnity Insurance Work?

We refer to professional indemnity insurance as PI. PI protects professionals. Customers and clients know their rights, and claims have become more frequent. You need to protect your livelihood, reputation, and profession against negligence claims.

Clients can claim against your business and against you for a range of incidents. You might be vulnerable to these claims, but there is specific cover that will protect you. Professionals such as lawyers, accountants, and doctors are all experts in certain areas who may need this type of  insurance. This is to protect against claims out of businesses and professional practices. Claims could include malpractice, misrepresentation and negligence.

Everything You Need to Know About Professional Indemnity Insurance

Professionals qualified in a specialist area need professional insurance. General liability insurance won’t protect against certain claims. These are usually incidents that arise out of business practices.

• PI protects professionals against claims arising from negligence or malpractice. Doctors, lawyers, estate agents, and accountants are some examples of professions covered.
• This professional insurance product protects businesses from claims of negligence that fall under the umbrella of professional liability.
• It can also be called medical malpractice insurance. Other names include omissions insurance and errors insurance. The specific type you get depends on your profession.

Professional indemnity insurance policies usually go according to claims made. It does not fall under homeowners’ insurance schedules. That’s because it is a speciality insurance cover. 

Professional indemnity does not cover people working from home. It does not form part of business insurance. Professional indemnity will not cover claims before the start of the policy. It only covers only claims made during the policy period. It will insure you for omissions, negligence, and errors in your professional capacity.

What You Should Know About a Retroactive Date

Professional indemnity cover will not cover all incidents. These would have happened before activating the policy. Certain insurance policies could include a retroactive date.

The retro-activated date refers to professional indemnity insurance cover not changed. This would be during the policy. Your professional indemnity insurance will not cover changes. This would be before the date of the insurance policy.

How Do Exclusions Work When You Claim?

Everything that likely won’t be covered under your Professional Indemnity Insurance: 

•  It does not cover you for bodily injury 
• Damages to third parties fall under general liability cover. Professional indemnity won’t cover third-party injuries and property damage.
• Professional indemnity won’t cover Injuries and illnesses that are work-related. Employees injured at work or fall ill fall under employer’s liability insurance. Worker’s compensation covers these. 
• Your professional indemnity cover does not include criminal activity or criminal prosecution. 
• Professional indemnity won’t cover civil legal action won’t cover.
• Your schedule will list all exclusions. 
• Professional indemnity covers nothing involving cyber issues. 
• It does not cover you for data breach and other technology issues. There’s a separate policy for technology, cyber liability, and data. 

 Contact your broker to find out more about exclusions.

Professional Indemnity Insurance Policy Wording

Some insurance policies are easy to read. Others are more difficult to understand. Policies worded less formally are easier to compare. Your insurance broker or service provider should assist. They will help you understand your policy. Your attorney might be the best person to ask about the wording on your policy. Keep an eye out for wording with major legal differences. 

What is the Best Way to Find the Right Cover?

We help you find the best cover for your profession. You will find the closest fit only by comparing quotes. This will be from a wide range of professional indemnity insurance service provider. Compare quotes to find the most comprehensive cover at the best rates.