Professional Indemnity explained
This type of insurance is a commercial policy designed to protect business owners, freelancers and the self-employed against claims for loss or damage made by clients or third parties, as a result of the impact of negligent services or advice they provided. For example, a client might sue an organisation if they provided incorrect information which then resulted in the client losing money.
You can protect the future of your business with this type of cover, should any type of mistake have a costly impact on one of your clients. So, if you offer specialist advice, services or designs, or deal with data and intellectual property, you could benefit from Professional Indemnity Insurance.
“Even when they do not provide any designs, all builders in the course of their work give advice or information to their clients. If any of that advice or information is incorrect, this may leave the builder open to a claim for negligence.”
Peter Matson, Chairman of FMB Insurance
What does Professional Indemnity cover?
The policy can take care of your legal costs and expenses (subject to terms and conditions) in defending any claims made against you and cover any compensation required to rectify the mistake. You can protect yourself against claims for:
- Damage – caused to a third party property or person as a result of negligence.
- Negligence – e.g., mistakes or errors made by you or your employees when supplying services or giving advice.
- Breach of duty – such as failure to complete work that is of an appropriately high standard.
- Financial loss - that has been caused due to your negligence, advice or services.
- Loss of data or documents – belonging to a client.
- Defamation – such as making claims about a person and/or business that could damage their reputation.
- Breach of confidentiality – e.g., sharing sensitive information without consent.
- Providing incorrect information – including a casual comment in passing that could count as advice.
Your coverage will be dependent on your insurer and business – please check your individual policy for detailed information about what you’re covered for.
Speak to a member of the FMB Insurance team on 01353 652760 to discuss your policy, email [email protected] or request a quote online here.