FEATURES PROFESSIONAL INDEMNITY INSURANCE Better
What is professional indemnity (PI) insurance? PI insurance is a type of liability insurance which is designed to protect businesses and individuals who provide advice, design or expertise to third parties. Also known as Professional Liability or Errors and Omissions Insurance, this cover is designed to protect you if a customer alleges that you provided faulty or inadequate advice and services. For businesses involved in the contracting industry, a ‘design and construct’ PI policy wording is needed – this is a specifi c type of policy designed to protect the professional activities of businesses working within the contracting sector.
safe than sorry
Members can now enjoy peace of mind with our professional indemnity insurance scheme, which has been launched exclusively for SELECT. But what IS professional indemnity insurance? What does it protect against? And how do you know if you need it? Here’s an overview of how it could prove vital if the unthinkable happens…
What does it cover?
This is the important bit! PI insurance covers the cost of your legal defence, along with compensation you may need to pay out to a third party following a claim made against you. It’s worth noting you don’t actually need to have done something wrong to call on your PI policy cover – an allegation is enough.
What does it not cover? Claims made by third parties if they are injured, become ill or have their property damaged during the course of your work, or as a result of or arising from a product you’ve manufactured, supplied or distributed. These events are more properly
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covered by public and products liability insurance. It’s also important to note that Pl insurance does not provide cover for defective workmanship.
So do I need PI cover? Many professions need PI insurance as part of their respective industry bodies’ regulatory requirements, or if required under the terms of a contract. Though it’s not a legal requirement
for everyone, PI insurance should be considered as essential for any company or sole trader off ering advice, design, knowledge or skills as part of their services.
With PI-related claims becoming more common, this type of insurance
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