Professional Indemnity Insurance Explained

Professional Indemnity Insurance provides essential financial protection for a wide range of professional advisers including accountants, engineers and computer consultants. In the event that a client suffers financial loss as a result of alleged neglect, error or omission professional indemnity insurance will meet the cost of defending claims and any damages payable.
Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received sub-standard service. The need for professional indemnity insurance has never been greater.
While some professional people see professional indemnity insurance as an expensive and unnecessary overhead, we know from experience that any professional can produce substantial claims. Court awards have risen sharply in recent years. Without insurance, the financial security of a business is threatened. The following examples highlight the importance of professional indemnity insurance:

• A business wished to be known by a particular trade name. After consulting with company registration agents, it was told that there was no objection to its chosen name. Proceedings were issued by a company with a similar name and £20,000 was paid in connection by the agents.
• Detailers prepared structural drawings for the erection of steelwork. It was subsequently alleged that the drawings contained errors and £110,000 was claimed for the costs of alteration and the resulting delays in construction.
• An auctioneer sold property at auction over a number of years. It was alleged that the property was stolen and a claim for £250,000 was brought for conversion.
• It was alleged that consulting engineers were negligent in their design of waste heating boilers. A claim for £4m was brought for the cost of extra work and the resulting delays.
• An estate agent missed the opportunity to carry out a rent review because of a defective rent review notice. The claim was settled for £50,000.

We are happy to provide professional indemnity insurance quotes for the UK or anywhere else in the world. So please visit our website for an instant Professional Indemnity Insurance online quote and be on cover in a matter of minutes.