Professional Indemnity Insurance Definition

Professional indemnity insurance enables you to pursue legal avenues to clear your name and defend your reputation with the backing of a legal and insurance team.

Professional indemnity insurance definition. Professional indemnity pi insurance is a commercial policy designed to protect businesses in the event that a client deems work produced or professional advice provided as inadequate. Professional indemnity insurance definition. Indemnity cover or professional liability insurance will prevent you from suffering a financial loss when defending or settling the claim. If someone alleges that you ve made a mistake overlooked a critical piece of information misstated a fact or they have misinterpreted you in the course of your work resulting in a financial loss for your client they may take legal action against you to recover those losses.

Those working in accounting architecture town planning surveying and law will often be required to take out insurance. Professional indemnity insurance is an important type of business insurance especially for businesses that give advice or provide a professional service to clients it can cover compensation claims if a business is sued by a client for making a mistake that leads to financial loss. Professional indemnity and business insurance to cover you in your profession and your business in its daily working if someone makes a claim against you don t stress you ll have us there to support you every step of the way. Professional indemnity insurance often referred to as professional liability insurance or pi insurance covers legal costs and expenses incurred in your defence as well as any damages or costs that may be awarded if you are alleged to have provided inadequate advice services or designs that cause your client to lose money.

Indemnity insurance is an agreement wherein one party guarantees compensation for losses or damages. Professional indemnity insurance isn t a legal requirement for all businesses but some professional bodies and regulators will insist on a minimal level of cover. Indemnity insurance is a type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder. Professional indemnity insurance is designed for professionals who provide advice or a service to their clients.