Professional Indemnity Insurance

Do I Need Professional Indemnity Cover?

Yes, if your business offers know-how or skills in a particular field for example if you are a self employed:

Lawyers, accountants and financial advisers are required by law to have professional liability insurance.

Doctors, pharmacists and health care professionals generally daren't practise without it.

Anyone who is in the business of giving professional advice or consultancy services in any capacity whatsoever, whether it's in the health, management consultancy or IT sphere, and who could be sued for making a genuine mistake, needs it.

As litigation becomes more and more prevalent in our society, it's becoming the norm for businesses to opt for this type of cover in addition to or in combination with employers and public liability insurance.

Who needs cover?

Examples of professions which require this type of cover include:

• Accountants
• Advertising Agents
• Architects
• Auditors
• Authors/Writers
• Aviation Professionals
• Bookkeepers
• Building Contractors
• Business Advisors/Consultants
• Chartered Surveyors
• Computer Consultants
• Complementary therapists
• Dentists and Dental Consultants
• Doctors, Nurses and Medical Professionals
• Engineers
• Health and Safety Consultants
• Graphic Designers
• Health & Safety Consultants/Advisors,
• Nutritionists
• HR Consultants
• Hypnotherapists
• Insurance Consultants
• IT Professionals and Businesses
• IT Computer Consultants
• Laboratories & Research
• Loss Adjusters
• Legal Consultants - Solicitors and Lawyers
• Management Consultants
• Market Research Consultants/Advisors
• Marketing & Communications Consultants/Advisors
• Mortgage Advisors
• Motor Trade Professionals
• Office Services/Bookkeepers
• Optometrists
• PR Consultants/Advisors
• Psychologists
• Recruitment Consultants
• Security Consultants
• Sports Agents
• Surveyors
• Telecom Consultants
• Training Consultants
• Translators & Interpreters
• Web Designers

Some professions carry a higher risk than others eg architects, engineers, surveyors and Independent Financial Advisors. If you work in any of these spheres, then professional liability insurance is a necessity.

Inevitably due to the riskier nature of these professions, insurers will require more information - and premiums will be higher.

Do I need Professional Indemnity Insurance cover?

Yes, if your business offers know-how or skills in a particular field. The type of business that needs professional liability cover are professionals who offer a knowledge-based service or advice such as:

• Business consultants
• Architects
• Solicitors
• Accountants
• IT specialists - internet service providers, e-commerce businesses, web designers and programmers

Charities and advisory bodies who offer free advice should also consider taking out professional indemnity cover.

Whatever your line of business, you need to be covered when a claim is made, not the date when the mistake was made.

Remember, someone could still make a claim against you, even though you've ceased trading.

Discuss fine details such as this with your insurer. Premiums should reduce once you've ceased trading or retired, but you will still have the peace of mind of knowing that you are covered for claims still to come.