Professional indemnity insurance
What is professional indemnity insurance?
Professional indemnity (PI) insurance protects businesses from a range of exposures, such as mistakes in services they provide, compensation claims, contract disputes and IP disputes. Our cover also includes media content liability and cyber liability for handling sensitive data as standard.
- Professional negligence
- Covers legal costs
- Copyright infringement
Set up your professional indemnity insurance in less than 10 minutes.
Change or cancel it at any time.
Benefits of our professional indemnity insurance
Payment of your fees
Where possible we want to avoid a claim as much as you do, so if it should arise, we can help settle a dispute between your company and your client regarding unpaid fees. We will pay the fees owed to you if a client refuses to pay and threatens to make a claim.
Reputation and brand protection costs
Our professional indemnity cover will pay for public relations and crisis management costs (including purchasing media space, printing and postage costs etc.) to protect your brand’s reputation in the event of a covered claim.
Intellectual property infringement
Accidental copyright breach is becoming more common for fast-growing companies. We pay up to £25,000 in legal costs to defend your business against others should it happen to you.
Professional indemnity insurance guide
What is professional indemnity insurance?
Professional indemnity insurance (PI), also known as professional liability insurance, covers you for claims where clients have lost money due to mistakes in your professional services. Professional services include any designs, advice, or consultations you carry out for a client. It also covers contract, IP and trademark disputes. Should a third party make a claim against you, a PI policy will cover your legal costs and expenses to defend you as well as compensation awards if the claim is successful.
Who needs PI insurance?
Freelancers, contractors or any size of business that provides advice, consultancy or design service should consider this policy. Having PI insurance could even help you win more business as it’s often requested by clients before entering a contract. PI is also a legal requirement for specific industries.
What risks does PI cover you for?
PI covers you if a third party sues you in relation to advice, consultancy or a professional service that you provided to them that resulted in financial damages. We cover for libel, copyright/ trademark infringement, design flaws, erroneous advice, defamation, plagiarism, wrong allegations, negligent content and product disparagement. We also cover you if a client of yours has business downtime as a result of your negligence and holds you financially liable.
Steps you can take to protect yourself
Firstly, it is important to get a lawyer to draw up watertight contracts and T&Cs for your client work, so both parties are clear on their professional duty, the scope of the work agreed, and any stipulations regarding what you can and can't be held liable for. You should also make sure that other parties you are contracting with have professional indemnity insurance, such as contractors and suppliers etc. Be sure to check out the limitation of liability and indemnification sections in contracts you sign to know what limits of insurance you need to maintain. If you’re a tech company, a great idea is to agree your service level agreements with your engineering staff to make sure you agree to a feasible level of service.
What to look for when purchasing professional indemnity cover?
It’s wise to consider the financial impact should something go wrong when choosing your limit of cover. Clients may request a limit, but legal action costs and the chance of multiple claims at once need to be taken into account. You should also maintain professional indemnity cover even after your contracts have ended, to make sure you are still covered if a claim arises after you provided the work. You should also declare any changes your business is making to your insurer to avoid oversights.
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Professional indemnity insurance FAQs
Most businesses are not legally required to be PI covered, so there’s no need to have the certificate. However, as soon as you take out cover with us, we will send you out a certificate (or a policy schedule) for each element of the cover you’ve purchased. This will show the level of cover you have, along with the start and end dates of its active period, and the costs involved.
When we talk about ‘level of cover’, we mean the maximum amount that would be paid out in the event of a claim. Estimating how much PI cover you need and therefore what it will cost you depends mostly on the nature and size of your business.
Superscript can provide cover ranging from £100k to £5 million, so whatever it is you need, we’ve got your back. We can even protect your business for work you’ve completed in the past - barring any known issues which will of course not be covered by new policies. The fastest way to wrap your head around it is to get an online quote.
There is no excess to pay when you make a claim on professional indemnity cover. Everything is handled from our side.
Professional indemnity insurance cover isn’t subject to VAT, however you do have to pay insurance premium tax - although this is considerably lower than VAT. The insurance premium tax currently stands at a standard rate of 12% (correct as of 01/01/2019). Please visit the UK Government website page to find out more about IPT (insurance premium tax).
Customise your cover
To simplify things, we've categorised our covers into three groups: essential covers, professional covers, and management covers. You'll be guided through these different options during the quotation process.
Boost your cover from £10.08 per month
Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.