Professional Indemnity Insurance
Protect your business when professional advice goes wrong
We all make mistakes. However, a small error or misunderstanding can cause a larger loss for a client under Broker Professional Indemnity Shop Liability.
That’s where Professional Indemnity Insurance (PI Insurance) can help.
Professional Indemnity Insurance is designed to protect professionals and businesses if a client claims they have suffered a financial loss because of your advice, professional service, work or design.
At Top Insurance Services, we can help businesses understand their Professional Indemnity Insurance requirements and arrange cover suited to their profession and the work they undertake.
What is Professional Indemnity Insurance?
Professional Indemnity Insurance is a type of business insurance designed for professionals, businesses and tradespeople who provide advice, designs, consultancy or professional services, or who may handle a client’s information or property.
If a client believes your professional advice, service or work has caused them a financial loss, they could make a claim against your business.
Depending on the circumstances and the policy cover, Broker Professional Indemnity Shop Liability may apply.
Additionally, it can help with the legal costs of defending a claim.
It also covers compensation you may be liable to pay, subject to the policy terms, conditions and exclusions.
Who might need Professional Indemnity Insurance?
Professional Indemnity Insurance can be relevant to a wide range of businesses and professions, particularly where clients rely on your knowledge, expertise, advice or professional services.
This can include:
- Consultants
- Accountants and bookkeepers
- Architects and designers
- Surveyors
- Engineers
- IT consultants
- Marketing and communications professionals
- Management consultants
- Recruitment consultants
- Business advisers
- Trainers and professional coaches
- Contractors providing professional services
- Other businesses where clients rely on professional advice or expertise
Some professions, contracts or professional bodies may require you to have a specified level of Professional Indemnity Insurance.
If you’re unsure whether you need PI cover, speak to us about your particular business.
What can Professional Indemnity Insurance cover?
The exact cover depends on the policy and insurer, but Professional Indemnity Insurance can provide protection where a client alleges that your professional work, advice or services have caused them a financial loss.
For example, a claim might arise because:
An error in a drawing or design
You accidentally misinterpret part of a drawing or design, resulting in additional costs for your client.
An error in a contract or document
A figure, number or important detail is entered incorrectly in a sales contract or other professional document, creating a financial loss.
Incorrect or outdated advice
You provide advice based on information that is incorrect or out of date, and your client subsequently suffers a financial loss.
These are only examples. Whether a particular incident is covered will depend on the circumstances and the terms of the policy.
Professional Indemnity Insurance and legal costs
A professional negligence claim can become expensive even when you believe you have done nothing wrong.
Legal representation, expert reports and the time involved in defending a claim can all create significant costs.
Professional Indemnity Insurance can provide cover for the legal costs and compensation associated with an insured claim, subject to the policy wording.
Having appropriate cover can therefore give you greater confidence when providing professional services to your clients.
How much Professional Indemnity Insurance do I need?
There isn’t one level of PI cover that is right for every business.
The amount you need can depend on:
- The type of professional services you provide
- The size and value of your contracts
- Your annual turnover
- The type of clients you work for
- The potential financial consequences of an error
- Contractual requirements imposed by your clients
- Requirements of your professional body or regulator
For example, a business working on a large commercial project may need considerably higher limits than a small consultancy providing lower-value services.
We can help you consider the level of cover that is appropriate for your business.
Professional Indemnity Insurance in Birmingham
If you’re looking for Professional Indemnity Insurance in Birmingham, Top Insurance Services can help.
We’re an independent insurance broker based in Birmingham, helping businesses and professionals arrange commercial insurance.
We understand that no two businesses are exactly the same. The professional services you provide, the contracts you undertake and the risks you face all need to be considered when arranging your insurance.
Get a Professional Indemnity Insurance quote
If you need Professional Indemnity Insurance for your business, give us a call on 0121 628 9494 or contact us to discuss your requirements.
We’ll help you understand the cover available and arrange a policy suited to your business needs.
Top Insurance Services
170 Highfield Road
Birmingham
B28 0HT
Monday to Friday: 9:00am – 5:00pm
Important information
Professional Indemnity Insurance policies differ between insurers. Cover is subject to the policy wording, conditions, exclusions, limits and excesses. Please read your policy documentation carefully to make sure the cover meets your requirements.
