Professional indemnity insurance will protect you when a dissatisfied client makes a claim against you in certain instances. PI is used predominantly by service advisors and professionals, many Clients of the services now expect to see a copy of the PI cover before awarding a contract. If you make a mistake and it costs the client to rectify they will be claiming!
In such instances, your client may want you to give them some sort of compensation. Even if you feel as though you haven’t done anything wrong, defending yourself may cost a lot. With professional indemnity cover, you will be protected from all of these costs.
For example, if a mistake is made by an engineer whilst in the construction process of a building project and it is discovered once the building has been completed. The client could claim for compensation for the money they would lose to re-build the building.
The engineer would be liable in this instance. The professional indemnity cover policy would cover the costs.
Another example: an employee sends confidential information about a customer to an incorrect address. The customer could claim for compensation for breach of confidentiality.
The employee who sent the information would be liable in this instance and the insurance policy would cover the claim and legal fees.
Deciding what kind of professional indemnity insurance cover you need can be complicated. We, at Trident Business Insurance will make it easier for you and find you the best quote so you don’t need to worry.