Professional Indemnity

Most companies feel quite secure in the knowledge that they have Public Liability Insurance and thus the risk to their business is removed. Unfortunately this security is a little misplaced if you provide advice as a professional, or in a consultancy capacity. In order to protect yourself against litigation from a disgruntled client, you will also need Professional Indemnity insurance, which covers a business in the event that they are pursued by a third party who claims that they have suffered a loss as a result of their professionals negligence.

Professional Indemnity Insurance protects a business against having to pay damages and legal costs should a claim arise.

A normal policy would include:

Breach of professional duty
Breach of copyright
Breach of confidentiality
Libel and slander
Loss of documents

Example
A drawing office prepared structural plans for the erection of steelwork. It was subsequently alleged that the drawings contained errors and over £100,000 was claimed for the costs of alteration and the resulting delays in construction.