What is Professional Indemnity (PI) Insurance?
Professional Indemnity Insurance, also known as PI Insurance, is a type of business insurance for companies working in professional services. This insurance covers compensation claims if a business is alleged to have made a mistake by a client that has led to financial loss.
Going into business can be a big risk. In the unfortunate event that a claim for negligence or incorrect advice is brought against you, Professional Indemnity Insurance can help to pay for any compensation costs and legal fees that you may incur.
At Swinton Business, we help companies across different trades protect themselves from the costs of allegations. Whatever your trade, we’ll take the time to understand the needs of your business to get you the best coverage possible.
Who needs Professional Indemnity Insurance?
If your company provides advice or professional services, you can protect your business against claims by investing in PI Insurance. Whether you are a consultant or a contractor, PI Insurance can provide peace of mind for your company, as well as potential clients.
Professional Indemnity Insurance proves your credibility in the marketplace, demonstrating sincerity and honesty. Handling a claim without PI Insurance could, at worst, financially cripple a company whether it’s new or established. At best, handling a claim without insurance will be disruptive to the wider functioning of the business, at a time when it’s most needed to run smoothly.
Employers and employees
Professional Indemnity Insurance will protect the company as a whole, covering allegations of mistakes against:
- Contract hires through an agency
- Labour-only contractors
These employees must be noted on your insurance policy to protect against compensation claims by a client.
Types of professional services
PI Insurance can cover a range of professional services including architects, logistics, consultancies, and marketing agencies.
PI Insurance could be a core business requirement if:
- Your company provides expert advice or consultancy
- You can anticipate disputes over quality or copyright
- You may be liable to claims of professional negligence
- You have access to confidential information
- You are self-employed
- You are required to have Professional Indemnity Insurance by an industry body
What is covered by Professional Indemnity Insurance?
Depending on your policy, PI insurance can cover:
- Mistakes in work or incorrect advice that has led to financial or reputational loss
- The use of copyrighted material without permission
- The sharing of confidential or sensitive information without consent
- Loss of client documents or data
- False statements that damage a person’s or company’s reputation (defamation)
- Libel or slander
Commercial legal protection
Whatever your line of work, you can protect your business and your clients with optional commercial legal protection, which lets you get the job done knowing you have a legal safety net.
Commercial legal protection can cover:
- Legal costs up to £100,000 per claim
- £1m cover per year for employment disputes and compensation awards
- Contract disputes covered up to £10,000 for Standard Cover and £100,000 for Gold Cover
- 24-hour legal helpline
Policy wording document (PDF - 0.2MB)
How much does PI Insurance cost?
Professional Indemnity Insurance varies in cost depending on how much cover you require and the value of your project. Other factors will also affect your premiums, like the type and size of your business, as well as the nature of your work, and the level of risk associated with it.
To gain an accurate quote for your business’ Professional Indemnity Insurance, get in touch with us at Swinton Business today.
Why choose Swinton for your Professional Indemnity Insurance?
- Be insured for up to £10m for Professional Indemnity, £1m for business equipment breakdown and up to £100k for business interruption
- Add business protection cover to ensure full coverage
- Choose from optional extras such as:
- Legal expenses
- Glass cover
- Theft by tenants
- Goods in transit
- Specified all-risks
Getting a Professional Indemnity Insurance quote couldn’t be easier. To provide your company with a competitive quote, we will ask a few questions to assess the level of coverage that you will need.
To speak to one of our insurance experts, get in touch over the phone or using the contact form below.