Professional Indemnity insurance you can trust
Professional Indemnity Insurance
Whether you are a professional person, giving professional advice to clients or have the requirement within your occupation to give advice you need to consider professional indemnity insurance. The advice is taken and acted upon but either it is found that there is a flaw in the advice or it was not correctly applied by the client. The end result is that you receive a complaint about your advice or you are sued by the client.
You design or draw up plans for a building, a development or amendments for any existing structure (from a new TV to an architectural drawing to renovate a castle). The plans/design are followed but either there is found to be a flaw in the plans or they were not followed correctly. The end result is that you receive a complaint about your advice or you are sued by the client.
Unfortunately in the 21st century this happens all too often. When the argument starts, it does not matter whether it is actually your fault or not, you are likely to be named as the defendant. Therefore you need help to defend the action and this is where your Professional Indemnity policy come in. Provided it was not the result of a deliberate act on your part your insurance policy will step in to assist.
Even if it was due to your negligence your policy is there to help.
There is quite a fine line between where Public Liability and Professional Indemnity start:
If someone slips or trips while on your premises and is injured, it comes under Public Liability.
However, if you ‘advised’ that the visitor should take care but there was an incident, because you ‘gave advice’ it could fall under Professional Indemnity.
Many occupations within the legal, medical, insurance and architectural worlds require Professional Indemnity cover to practice but there are plenty of others where it is prudent to carry such cover (e.g., insurance broker or business adviser).
The question is, in the event of something going wrong do you fix it or does it require something more which will cost a substantial amount or has it caused financial or other hardship to the client?
Legal Expenses in case there is a dispute which could involve you considering court action.