Why purchase professional indemnity insurance?
Whatever your profession, your clients will demand the highest level of service from you. A simple error can result in a professional negligence claim from your client, who is likely to be well aware of their legal rights. Even if the allegation is unfounded, it will need to be investigated and defended, and often this will be at a considerable cost to you. Any person who provides advice, who designs or who offers similar services in a professional capacity will be regarded by their client as an expert, and they will expect the highest level of professionalism from them. How will a PI policy help you if your client alleges that you have made an error? If not defended early, costs can escalate and damage your professional reputation. Example The Insured acted as consultant for a customer. It was when the client suffered a downturn in their trading figures that they sued the Insured. The client alleged that it was the strategic advice that had caused their financial difficulties. The pro