Professional indemnity insurance provides cover for a range of scenarios that could cause financial loss or damage to your client, such as loss of documents, breach of confidentiality, making defamatory statements, breaching copyright, or incorrect advice.
But if everything so far has all seemed a little theoretical, let’s look at some examples of professional indemnity claims to see how the cover works in action.
An architect recommends a building material that proves inappropriate for the project, resulting in the building work needing to be rectified at the cost of the architect’s PI insurance.
An advertising agency prints the wrong telephone number and email address on a client’s marketing material, resulting in a reprint.
An accountant fails to file a tax return by HMRC’s deadline, resulting in their client receiving a penalty fine.
A haulage company sends building materials to the wrong location, causing delays in construction that attract contractual penalties. This is a good example of a business which provides both product and professional services.
To find out more about professional indemnity insurance, and whether it would be beneficial to your business, contact our team on 01603 218000.