- Professional indemnity insurance – what does it cover?
- Professional indemnity covers your legal costs and expenses in defending a claim, and any compensation or costs that may subsequently be awarded, following:
- Professional negligence, such as making a mistake in a piece of work for a client, or giving them poor advice
- Unintentional breach of confidentiality and/or copyright
- Defamation and libel
- Loss of documents or data
- Loss of money or goods (for which you are responsible)
If you provide advice, design or a professional service to your customers, professional indemnity insurance (also known as professional liability insurance or, in some cases, indemnity insurance) is typically regarded as essential cover.
In a nutshell, professional indemnity insurance can provide you with cover for claims made against you due to a problem with your work, advice or process. For example, it could protect you against a compensation claim from a client for negligence or mistakes, covering the potentially expensive legal costs.