Benefits of Professional Indemnity Insurance
What is professional indemnity insurance?
Professional indemnity insurance, or PI, is for companies or individuals that provide services based primarily on personal knowledge or skill set. Consultants, engineers and architects will typically hold this type of insurance.
Depending on the size of the limited or public company and risk level involved, PI insurance can range from £100,000 to £60 million.
What does PI insurance cover?
Companies and individuals all have easy access to information on their rights, so PI insurance is seen by most as an essential factor in a business or a sole trader. PI insurance protects against claims for loss by either a client or any third party if any mistakes made are deemed to be negligent.
Depending on the type of policy held, PI can cover:
- Misleading and deceptive conduct or advice
- Defamation or misrepresentation
- Breach of intellectual property rights/professional duty
- Damages due to fraud
- Defence costs associated with legal claims
- Negligence or a violation of good faith
It’s easy then to see the benefits of PI insurance.
Benefits of PI insurance
Here is just a shortlist of the benefits to a company holding PI insurance.
- Financial protection – Losing money through lawsuits can be incredibly damaging to a business. Defence costs such as legal fees and court costs are covered by PI insurance.
- Credibility – Clients and investors can maintain complete confidence in the professional services of a company holding PI insurance in the case that any discrepancies arise, they are protected.
- Saves time and money – Legal claims can be a huge financial detriment to a company, as well as occupying employees time and expertise that could be better used elsewhere. PI saves time and costs in the event of any allegations.
- Tenders – Some contractors have a condition you need to possess PI in order to even be able to apply for a tender. And even if that is not an essential condition, it will be more attractive to a business than a competitor who does not hold professional indemnity insurance.
- Confidence – Confidence in professional services increases the effectiveness of results. If a person was always in fear of repercussions of their professional opinion or services, this would stifle the more cutting edge or higher risk projects.
Fire Design Solutions
So, how can we help? FDS has £10 million worth of PI insurance so you can be confident in the company you are working with and the service and professional support you are receiving.
Holding such a high level of professional indemnity insurance is unusual for a company of our size, but we understand the benefits it brings to our clients. We are confident in our experience and will always strive to be the innovators in our field in order to provide the best service possible. With PI insurance, our clients can be comfortable and confident in this knowledge too.
Contact us today to find out how our expertise and experience can aid your project.