What is Professional Indemnity Insurance?
Professional Indemnity insurance (PI) protects you and your business against claims that may result from giving advice or from a mistake made in your work or the work of your company. Any client can bring a claim against you at any time (whether justified or not) and all claims require time and cost in defending them.
Claims can be a result of negligence, dishonesty, omission, defamation, infringement of intellectual property rights, loss of documents and errors. Professional Indemnity policies do not just respond when a claim needs to be paid, it responds the moment a claim is notified.
It is important to remember a PI policy not only protects you for the work you have done, but also what you have not done. A claim made by a client needs to be defended and this takes time, money and is a distraction from your core business. A PI policy can cover defence costs, give you access to claims handlers and lawyers, whilst protecting your bottom line.
PI insurance is compulsory for some professions. It is common place for clients to ask for sight of a firm’s PI policy before awarding them a contract of work. Many clients expect professional firms to have PI insurance in place which demonstrates a well-run firm which has a positive approach to risk management.
What can I expect from my Policy?
Your policy will be underwritten by a leading insurer (A.M.Best Rated A, Excellent) providing strong financial backing and giving you peace of mind.
In the event of a claim, you will have direct access to a qualified claims team who will be able to assist and guide you through what can be a stressful time. Your policy responds once a valid claim is made and will contribute to defence costs in defending the claim.
Your policy will be bespoke to the services your firm provides to clients, however the majority of our policies provide the following coverage:
Breach of Contract
Unintentional breach of contract between you and any person or entity with whom you have contracted to provide professional services.
Negligent act, error, omission, misstatement or negligent misrepresentation.
Fraudulent, criminal or malicious acts, errors or omissions of any employee. The policy will respond to indemnify the company but not the employee.
Defamation, libel, slander, product disparagement, trade libel and prima facie tort.
Right of Privacy or Publicity
Any violation of the rights of privacy of an individual. Invasion of the interference with an individual’s right of publicity including commercial appropriation or name, persona, voice or likeness.
Intellectual Property Infringement
Unintentional intellectual property infringement including but not limited to infringement of copyright, trade dress, trade mark, service mark, domain name, title or slogan or plagiarism.
Act or omission giving rise to any other civil liability not included above.
If your client is dissatisfied with your professional services rendered and refuses to pay for any or all of your fees and threatens to bring a claim, insurers may pay the amount owed to you.
Theft, loss or unauthorised disclosure of personally identifiable non-public information or third party corporate information that is in the care, custody or control of your organisation.
Computer Security Failure
Can extend to alteration, corruption, destruction, deletion or damage to data assets stored on a computer system. Failure to prevent transmission of malicious code to third party computer systems.
Regulatory Defence and Penalties
Claims expenses and penalties which you are legally obligated to pay due to a claim, in the form of a regulatory proceeding.
Website Media Content
Damages or claims expenses which you are legally obligated to pay resulting from any claim relating to defamation, violation of rights of privacy, plagiarism, infringement of copyright, infringement of domain name, trade mark or logos.
PCI Fines and Costs
Payment Card Industry (PCI) Fines and costs relating to payment card data security breaches.
Forensic Defence Costs
Cover for reasonable forensic costs and expenses of a computer experts arising from a security breach.
Loss of Documents
Cover for loss, damage, destroyed or mislaid documents.
Crisis Management and Public Relations
Public relations costs to protect the reputation of the firm following a claim or breach with respect to computer failure or data breach.