Professional Indemnity Insurance, also known as PI Insurance, protects you and your business against claims of alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.
In simple terms, professional Indemnity Insurance covers you if something you do (or neglect to do) in the course of your work leads to a customer suffering physically or financially and taking legal action against you. In this case a Professional Indemnity Insurance policy can help you defend your business while preventing financial loss for your company.
Do I Need Professional Indemnity Insurance?
If your profession requires you to provide advice or services, Professional Indemnity Insurance is important to protect your business against claims of malpractice or professional misconduct.
Many professionals underestimate the costs that are incurred when legal action is taken against your business for claims of negligence. The cost for defence alone often exceeds $100,000. Many businesses, in particular small businesses, would struggle to fund such costs. Because of the critical importance of this misunderstood insurance, we devised this Professional Indemnity Insurance Explained post to help you.
Is Professional Indemnity Insurance Worth It?
Having Professional Indemnity Insurance gives you the power to defend your professional reputation. Without Professional Indemnity Insurance you may not have the funds to defend your name if a third party claims malpractice, professional misconduct, or breach of duty against you. With Professional Indemnity Insurance you have the ability to pursue legal avenues to clear your name and your reputation without suffering a potentially ruinous financial blow.
If a third party were to claim a breach of duty on your part, unfounded or otherwise, and you did not have Professional Indemnity Insurance, it may be financially necessary for you to settle the case quickly. It is important to understand that such actions can be seen as an admission of guilt and result in damage to your reputation, and therefore impact you business in the long-term.
How Should I Secure A Professional Indemnity Insurance Policy?
Given the complexities associated with Professional Indemnity Insurance, arranging your cover with the assistance of a PSC Direct Insurance Broker can give you the peace of mind of knowing that all aspects of your business are being taken into consideration to secure the best-fit cover available.
Utilising the services of a PSC Direct Insurance Broker also ensures that, if the unfortunate situation arises where you need to make a claim, you’ll have someone on your side to help you through the difficult claims process and act as an intermediary between you and your insurer.