Professional Indemnity

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Insurance for Professional Negligence.

The requirement for professional indemnity cover has grown over the past several decades as more people enter professional service-based occupations and give advice, make recommendations, designs solutions, or represent third parties in a professional capacity.

Insurance was initially available for ‘traditional’ professionals, such as doctors, solicitors, accountants and architects, however in recent years cover has been made available for virtually all types of professions.

The purpose of professional indemnity cover is to protect yourself, your business and your reputation in the event of a legal action brought against you or your company following a negligent act, error or omission. Policies typically also protect against slander, libel and breach of contract.

There are many reasons for requiring professional indemnity insurance including:

It may be legally required by a professional organisation such as for lawyers.
It may be a regulatory requirement.
It may be a contractual requirement of a client.
It is a prudent way of securing additional protection against the chance of incurring legal costs and expenses.