What is Professional Indemnity Insurance?

Professional indemnity insurance protects professionals and businesses against claims made by clients or third parties for errors, omissions, or negligence in the services they provide. If a client alleges that your advice, services, or designs have led to financial loss or reputational harm, professional indemnity insurance covers legal defence costs and any compensation awarded.

This insurance is essential for professionals in industries such as consulting, legal, finance, IT, marketing, and architecture.

What does professional indemnity insurance cover?

Professional indemnity insurance is designed to cover a range of scenarios where your professional services might result in client dissatisfaction or loss. Typical cover includes:

• Professional Negligence: If you make a mistake in your work, provide incorrect advice, or fail to deliver services as promised, this insurance covers the resulting claims and compensation.
• Breach of Confidentiality: In cases where confidential information is inadvertently disclosed, leading to reputational or financial harm for your client, this cover protects you against related claims.
• Defamation and Libel: If your services or statements unintentionally damage a client’s reputation, this insurance can cover the legal costs and any settlement fees.
• Loss of Documents or Data: If you lose important documents or data belonging to a client, professional indemnity insurance can cover the costs associated with recovering or replacing these assets.
• Intellectual Property Infringement: If a client alleges that you’ve breached intellectual property rights, whether through copyright, trademark, or patent infringement, this insurance provides cover for legal defence and settlement.

Do I need professional indemnity insurance?

If you provide professional advice, consultancy, or specialised services, professional indemnity insurance is highly recommended.

Even if you’re meticulous in your work, a dissatisfied client or an unexpected error can still lead to claims, impacting your finances and professional reputation. Professional indemnity insurance ensures you’re prepared for the unexpected and provides peace of mind.

How much professional indemnity insurance do I need?

The amount of professional indemnity insurance you need depends on several factors, including:

• Industry requirements: Certain industries, such as law, accountancy, and healthcare, may have regulated minimum cover requirements.
• Nature and value of your work: If you handle high-value contracts or projects, higher cover limits may be necessary to adequately protect against potential claims.
• Client requirements: Some clients or projects may specify cover requirements, particularly if you’re working with large or high-profile clients who want assurance of financial protection in case of issues.

Acer Insurance’s advisers can help assess your business needs and recommend the most appropriate level of cover, ensuring that your cover is comprehensive and tailored to your specific risks.

Why choose Acer Insurance for Professional Indemnity Insurance?

Acer Insurance is an established independent insurance broker, we have been arranging both personal and commercial insurance policies for more than 25 years. Our insurance brokers apply their market knowledge to find cost-effective solutions tailored to your specific insurance needs. We excel at finding innovative answers for unusual, challenging and unique insurance requirements. Expertise, integrity and personal service underpin everything we do.

Contact us for a quote today

Call 01959 528435 for an immediate quotation or leave your details below and one of our experienced team members will call you back.