Professional Indemnity Insurance
What Is Professional Indemnity Insurance and Who Should Get it?
Professional indemnity insurance is known under various other terms, including professional liability insurance, or even simply PI. The insurance is in place to cover any legal costs as well as the expenses that have been incurred as a result of an incident that affected someone else’s financial value or cost them money. The insurance covers you during the allegation of this incident, whether you are deemed guilty or not. Complaints that can be placed which would lead you to needing your insurance would be a complaint against any advice you gave, service you provided or design you made. Quote Supermarket have worked alongside clients to gain the valuable experience in this field, protecting their customers in the event that something does go wrong – all for a great price.
An Example of a Claim
A graphic design company received what both they and their client thought was a very clear brief. They were asked to create price tags for the client’s products, and these would have to be made in such a way that they could fit around the stems of the real Christmas trees inside the client’s store. Some of these trees would be outside, which meant that the tags had to be able to resist the elements. Besides this, as the trees would grow, the tags would have to be able to comfortably stretch over time.
Unfortunately, despite the work of the graphic designer, the ink started to run when the tags were in pace. This made them useless, which led to the client losing money. Deciding to take legal action, they cited professional negligence and pursued the design firm for compensation. The professional indemnity insurance covered all legal costs that the graphic designer incurred, as well as the payments for compensation that had to be made to the client.
Do I Need Professional Liability Insurance?
A lot of professions are not obliged by law to take out this type of insurance. However, it may be useful to consider it anyway, given how much it could protect your brand in the event of a dispute. The costs of professional negligence law suits can be very high, and these types of sums could destroy a business which is not able to afford such sums.
Some examples of companies that generally take out professional indemnity insurance include:
- Consultants and managers, particularly in marketing, education and training, since it is very easy for expectations not to be met.
- IT professionals, in particular developers and programmers, as they often are faced with goals which cannot be achieved.
- Recruitment professionals, as if someone they place turns out not to be good at their job they could be considered liable.
- Designers in various trades, due to situations as the one described in the example.
- Fitness professionals, mainly due to the risk of injury. Clients regularly sue fitness professionals because they are not happy with the results, but these suits are usually unsuccessful.
- Private tutors, mainly because they are often hired in order to make sure a child or person is able to pass a certain exam.
Contact Quote Supermarket today to get your personalised quote and to discuss the protection that would benefit you the most.
