professional indemnity brokers

WHAT IS PROFESSIONAL INDEMNITY ?

Professional Indemnity is a type of insurance that provides professional advisors protection from costs that may occur as a result of them giving bad advice or making errors.

Also known as PI Cover or Errors and Ommisions, Professional Indemnity Insurance provides cover for the costs associated with a court awarding sums against a professional, when a client of that professional encounters a financial loss due to their neglect, errors or omissions.

The four areas below illustrate where professional businesses are most at risk, so seek PI Cover :

a breach of duty of care through negligence, errors
or neglect

a misuse of intellectual property through
unintentional infringement of copyright or trademark

the loss or damage of documents or data that
belong to clients

a loss of clients money through dishonesty

Attitudes have changed in the UK towards bringing legal action for professional error. The ever increasing number of cases coupled with the high financial stakes of court actions, has meant that taking professional indemnity insurance is now regarded as good business practice. Without suitable PI Cover the financial well being of any professional business large or small, is at risk.

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A typical Professional Indemnity Policy will include the following PI Cover:

protection against compensation or damages awarded
to a client

payment of legal fees as well as access to specialist
lawyers should a claim arise

specialist advice available directly from insurers legal
advisors in the event of a claim

on some policies, financial assistance to correct a
mistake you have made before a claim is made

international or solely UK cover as specified

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WHO NEEDS PROFESSIONAL INDEMNITY ?

Those who take out Professional Indemnity Insurance can be split into two groups;
a) those in professions that must have professional indemnity to legally trade
b) those in professions that seek professional indemnity to reasonably cover their business risks.

Professions that LEGALLY need Professional Indemnity Cover :
Accountants – regulating bodies: ICAEW, ICAS, ICAI,
ACCA, CIOT, AATArchitects – regulating body: ARBIndependent Financial Advisors – regulating body: FSAInsurance Brokers – regulating body: FSASolicitors – regulating body: SRA

Professions that SHOULD consider Professional Indemnity Cover :
Construction & Building ContractorsConsulting EngineersDirectors & OfficersEstate AgentsIT ConsultantsManagement ConsultantsMedia & Marketing ConsultantsRecruitment ConsultantsPharmacistPublishersSurveyorsTrustees of Charities+ any other profession that supplies advice or services

HOW IS PROFESSIONAL INDEMNITY WORKED OUT ?

Professional Indemnity insurance is by no means a simple type of insurance policy to quote on or provide. There are often various exclusions, conditions, and warranties that can be applied. Working through these with an experienced insurance broker is highly advisable.

Professional Indemnity Insurance will be assessed by your insurance broker and quotes will be provided through insurers based upon the following criteria :

turnover or annual fee income

type of profession / business

ratio of staff to clients

your approach to risk management

professional qualifications and how long they have
been held

location of clients eg. If you have clients in the USA
you will pay more

claims history

PROFESSIONAL INDEMNITY COVER FROM CARVEL

Carvel only deals with commercial insurance, here are the PI
Cover benefits to you :

Highly competitive quotes

Bespoke cover or policies for 'Standard Professions'

Rapid turnarounds on proposals, quotations and paperwork

Options to make savings by combining indemnities &
liabilities cover in one policy

Assistance with risk assessments and risk action plans if
required

For more detail see 4 reasons Carvel stands out

Contractors

Tradesman

Office

Hotel

Taxi