Protecting professional people who provide advice or a service to their clients

If you provide advice, design or a professional service to your customers, professional indemnity insurance (also known as professional liability insurance) is typically regarded as essential cover.

A professional indemnity policy is designed to offer protection to professional people against potential claims for injury or loss resulting from their actions, advice or failure to carry out their professional duties. For example, an investment consultant may give incorrect advice, resulting in financial loss to their client.

Everyone strives to provide their clients with the best service possible, but if things go wrong, it pays to be properly insured.

A standard policy covers liability for injury, damage or financial loss arising from a breach of professional duty carried out in good faith or negligent acts, errors or omissions in your professional capacity.

Other features of professional indemnity insurances are:

  • Unintentional breach of confidentiality – such as sharing sensitive client information without permission
  • Unintentional breach of copyright – such as using an image on your website without permission
  • Defamation and libel – such as making false comments about a competitor or client that damage their reputation
  • Loss of documents or data
  • Loss of money or goods (for which you are responsible)

The optional extensions which are available include:

  • Collateral warranties
  • Cover for any other person or firm acting jointly with the insured
  • Liability for breach of warranty of authority, in the event an action is taken in good faith on behalf of a client which you are, in fact, not authorised to do
  • Fidelity guarantee