What is Professional Indemnity Insurance?

Professional Indemnity Insurance can provide peace of mind for business owners, by safeguarding your business against potential court costs and compensation claims for professional services. Professional Indemnity Insurance protects a business against financial losses for any legal action taken against them for services or advice they have provided.

What can be Covered with Professional Indemnity Insurance?

  • Damages and claimant costs awarded against you
  • Legal and defence costs
  • Claims investigation costs
  • Court attendance costs
  • Public relations costs

What is typically not Covered?

  • Intentional damage
  • Fraud and dishonesty
  • Bodily injury
  • Property damage
  • Known claims and circumstances (pre-existing events)

Why is Professional Indemnity Insurance Important for Business Owners?

Professional Indemnity Insurance is a critical operational insurance, in particular for those providing a professional service or advice.  Whether a claim is valid or not, you’ll be protected against court and compensation claims that could financially put you out of business.

What type of Businesses need Professional Indemnity Insurance?

Professional Indemnity Insurance is particularly important for businesses that provide a professional service to clients.  Pet trainers and Vets are good examples of services that give advice that could be subject to a legal action.

For example, you provide a pet training service, and give advice that your client feels was harmful or inappropriate for their pet and which they feel resulted in a negative outcome. Vets of course give advice every day, and so can be vulnerable to claims being made against them, especially when there is the emotion of the pet involved.  No matter how good you are at what you do and the services you offer, defending a false claim not only takes up a lot of emotional energy but can have serious financial consequences as well.