Type your search query.

Search byAlgolia

Why is professional indemnity insurance important?

By Ruth Sedar Published in Business November 26, 20212 min read
Rubber Ring Professional Indemnity for media and creative professionals

Professional indemnity insurance can protect your business, and when your business is not only your baby but your livelihood, it makes sense to do just that. Professional Indemnity Insurance (PI) – or Professional Liability insurance as it is sometimes known can cover legal defence costs as well as compensation payments for any acts, errors or omissions that you make or accused of making in the course of your work. 

Why is it important?

It is only human to make mistakes but even a small mistake could result in a big loss to a client, especially when you are employed in a creative field where there are fewer rules and the finished product can be open to interpretation. You need to feel confident in your ability to carry out a project to conclusion without sweating the small (and big) stuff and the certainty of knowing you have a professional indemnity insurance policy can take some of the weight of those shoulders.  

How can it help?

PI can help with a variety of losses to a client so if you are a business that provides some kind of professional service to clients, offers advice, handles data or intellectual property belonging to others, then Professional indemnity insurance can help to protect you in terms of compensation claims and legal defence costs.  

The following looks into the benefits of cover for a few of the professions that we offer products for:- 

IT Consultants

Whether you work for a small business or major corporation, IT consultants are one of the many professions that are often required under contract to hold professional indemnity insurance. An ipro professional indemnity policy could provide cover for such things as:- 

  • Incorrect advice or a mistake 
  • Infringement of somebody else’s intellectual property 
  • Breach of Contract 

Media & Creative

Media is perhaps the biggest player in the industry, with almost every business involving interaction of some kind. Risks facing the industry such as defamation and intellectual property infringement have always been there and in a compensation culture are only becoming more prevalent.

If you count yourself among marketers, graphic designers, web designers, advertising agents, public relations, brand development, corporate identity consultants, copywriters, publishers and broadcasters then professional indemnity insurance can offer protection against such issues as:

  • breach of professional duty
  • libel or slander
  • unintentional breach of confidentiality
  • unintentional infringement of intellectual property rights
  • breach of advertising regulations

Project Managers

Being a project manager can be satisfying work when everything runs according to plan. As the saying goes, however, what can go wrong will go wrong some of the time and a client won’t be pleased if it leads to their loss. In a time like this it’s nice to know that project managers’ professional indemnity insurance can be there for you, when you most need it. 

  • loss of documents or data
  • Incorrect advice or mistakes 
  • Breach of contract

Translators and Interpreters

Due to a partnership with the organisation The Big Word, we are proud to offer professional indemnity insurance for translators. Translators and interpreters lead busy lives, darting from phone interpretations to court hearings as well as working away on translations at home. 

Inherent risks associated with this field of work are:

  • Mistranslating when translating/interpreting 
  • Failure to meet a deadline causing your client financial loss  
  • Loss of your client’s information 

Professional indemnity insurance can provide protection and help give you a peace of mind that your policy is there, should you need it and lets you concentrate on doing what you do best.