Professional Indemnity Insurance, also known as Professional Liability Insurance, is a policy that safeguards the company and employees in advice-giving industries against liabilities arising from the performance of those duties.
Professional Indemnity Insurance provides protection for claims brought against the insured for financial loss, injury or damage arising from a breach of professional duties in the course of conducting business. The policy aims to uphold the company’s brand and assets in the event of a claim, allowing them to continue business.
Professional Indemnity is a broad cover and protects the business in a multitude of ways. The following are examples of what your Professional Indemnity policy may cover:
Many industries require that Professional Indemnity Insurance is obtained prior to offering licensing or before you can initiate business. For example, for doctors, surgeons, or other medical professions, a Professional Indemnity policy commonly known as Malpractice Insurance is required. The following are examples of professions that typically would require Professional Indemnity.
Professionals are expected to possess a comprehensive knowledge in their area of expertise where they are giving advice. At INLE Risk Management we will safeguard you and your employees from financial risk and allow you to have peace of mind when making proposals and giving advice in your line of work.
The primary purpose of Professional Indemnity Insurance is to protect your business against any financial losses from lawsuits resulting from negligence, inaccurate, or poor advice given by the company or your employees.
Even the best employees make mistakes, and that is why it’s crucial to have Professional Indemnity cover to protect them and the business from breaches of professional duty.
As previously mentioned, traditional professions such as lawyers, accountants, and surveyors require Professional Indemnity cover from their respective regulators and professional bodies. However, Professional Indemnity cover can also be required in other cases, such as with buildings and construction, where contracts often require coverage to be in place before commencing work.
Even the most tightly run business may face legal trauma, and successfully defending against claims can be very costly, even when your business is in the right.
In recent years, we have seen a steep rise in the number of claims for professional negligence. Between 2012 and 2016, claims in the United Kingdom’s high court against solicitors and barristers alone rose 170%, according to Reynolds Porter Chamberlain.
At INLE Risk Management we will structure the ideal and appropriate Professional Indemnity cover for your business.
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