Do I need professional indemnity insurance?
When to consider PI cover
If your business offers professional services or advice, you may want to consider PI. This is because if one of your clients suffers financially as a result of your work, PI will step in, covering any legal and compensation costs that result.
Who needs professional indemnity insurance?
While some covers are suited to almost every business, PI insurance is better suited to certain types of services and industries.
You should think about professional indemnity insurance if:
- You offer professional services
- You are an advisor or consultant such as management consultant, accountant or fitness coach
- Your work exposes you to claims of professional negligence, for instance healthcare professional that offer health advice or training
- Your work could lead to disputes over copyright, quality or vision such as a photographer
- You have access to confidential information, such as contact details or medical history
- You offer services on a self-employed basis, such as a freelance software developer or contracting electrician
- You are required to have PI cover by your clients or regulatory body in order to offer your services, such as financial consultants, engineers and healthcare professionals
Why do you need professional indemnity insurance?
There are many reasons why you might want to think about adding PI cover to your policy. Here are just 4:
Mistakes happen to everybody
No matter how careful and dedicated you are, there are some days when the world conspires against you, resulting in mistakes or errors in your work. Luckily, PI was made for just those days, ensuring you don’t have to foot the bill for the fallout.
It could help you win business
Some clients will need to see that you have a certain level of PI cover in place, so getting protected will help ensure they don’t go elsewhere.
Relationships can turn sour
Sometimes relationships can deteriorate. If things turn nasty, professional indemnity insurance ensures you can challenge the allegations, and recoup any unpaid invoices.
Reputations are fragile
Legal claims are stressful in more ways than one, not least because of the impact on your reputation – and that of your business. Our PI cover has PR support included, giving you the power to control the story.
Is professional indemnity insurance a legal requirement?
If you work within any professional services industry, such as accountancy or property management, professional indemnity insurance may be a requirement of regulators or professional bodies.
Whether you are starting out or want to ensure your business continues to run smoothly it’s important to double check with your relevant industry body if you need professional indemnity insurance in order to make sure you can both operate and are protected when you need it most.
If you're unsure whether this type of cover is a requirement for your work, you can read more about
Our insurance 101 guides answer more of your professional indemnity questions.