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.
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.
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
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, AAT
Architects – regulating body: ARBIndependent Financial Advisors – regulating body: FSAInsurance Brokers – regulating body: FSASolicitors – regulating body: SRAProfessions 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
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
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 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
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
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A single phone call and you can access our entire range of policies to provide instant business insurance.
Connect with Carvel, call us now on 08458 733 133
Authorised and Regulated by the Financial Services Authority
Carvel Insurance Brokers Limited ~ 1 Poultry ~ London ~ EC2R 8JR
