5 Things You Need to Know About Professional Indemnity Insurance
Professional Indemnity is a hot topic in insurance circles and businesses need to pay attention. A number of insurers have stopped providing the insurance, changed their small print and significantly raised prices. Here are 5 things you need to know:
1) PI - does not mean Magnum PI!
In insurance it means Professional Indemnity and its designed to cover financial damage caused from negligence, error or omission, misstatement or misrepresentation arising out of a professional service. Public liability insurance does not cover any advice you give - it covers physical damage.
2) Who needs it?
Anyone selling their skills and specialist knowledge based on their qualifications or historic experience. For example, consultants, designers, engineers, IT services, intermediaries and advisors.
3) Its more than insurance for your mistakes
It can also defend you should your client accuse you of a mistake (even if its unfounded), cover you for accidentally releasing confidential information, saying something deemed defamatory and the unintentional use of third party images.
4) You are still liable even if you didn't charge for the advice
It doesn't matter whether you charge a fee or offer some friendly free advice. Professionals owe clients a duty of care and if something bad happens, there could be a claim.
5) Watch out if you are in design and construction.
Some insurers are changing policy exclusions. These could lead to you be liable for cladding claims from work you've done in the past 15 years! Connect with Penny Collins today to learn more. Call us at Capital Mutual Insurance Brokers and we will walk you through what all this means for you and help you every step of the way.