Do you need Professional Indemnity Insurance Quick?

Professional indemnity insurance is a type of business insurance that covers you for costs you might face if your work, service, or advice causes a client to suffer a loss – either financial or reputational.

A professional indemnity insurance policy can cover you for:

• Professional negligence: If you give incorrect advice or make a mistake.
• Defamation: If you produce or support libel statements about your client.
• Breach of confidence: If you share sensitive information without permission.
• Breach of copyright: If you infringe on copyrights, trademarks, or intellectual property.
• Lost or damaged documents: If you lose or damage documents while they are in your care.
• Employee cover: If an employee commits a malicious act that causes a loss for your client.

Whether or not you need professional indemnity insurance depends on the type of work you do, and the industry you are in. It is normally suited to industries where you offer work, services, or advice to other clients.

If you work in certain professions, regulatory bodies might require that your business has professional indemnity insurance, however, it is not strictly a legal requirement. If you are a doctor or nurse for the NHS, your practice should provide you with professional indemnity insurance – however, it is best to check this is the case.

Insurers will set your premiums for professional indemnity insurance based on factors such as:

• Size and type of business: Bigger businesses generally have more at stake when it comes to financial and reputational losses, so you will generally need higher levels of cover if your client is a big company
• Nature of the work you do: If your business faces high levels of risk, then insurers are also likely to charge more in premiums