Professions which can cost Professional indemnity insurers a great deal of money

Need a professional indemnity quote? You can get one from the PII Hub!

Professional indemnity insurance, also known as 'PI' or Professional liability cover, refers to policies which covers claims made against professionals due to problems in the work they have provided. For example: A business can have a claim made against them due to their negligence or poor standards of work, which as a result, has led to their clients losing money or damaging their reputation.

Although it's not compulsory for most businesses to take out professional indemnity insurance, it's strongly advised as it can provide valuable security, especially for small businesses. Not only does PI protect businesses against client's compensation claims but will also cover the expensive legal costs involved. There are certain professions which will benefit greatly from taking out PI and are known to make huge claims on their insurance because of the nature of their profession:

Journalists are in high risk of having claims made against them as they are responsible in producing published content that are often seen by a large audience, therefore they need to be veracious about facts before releasing them. If false information is released, legal disputes are almost certainly going to occur and the journalist could be in trouble for slander.

Destroying the reputation of a business or individual by distributing false information about them can be a grave matter as it can lead to them losing out on business, money and the respect of others.

Accountants are also at a high risk of having claims made against them if their carelessness impacts their clients in a negative way. Some common examples of negligence include: failure to lodge tax returns which leads to a client losing tax repaying and interest, or failing to spot a serious fraud due to inadequate audit procedures.

Accountants are highly trusted professionals therefore it's their duty to ensure clients are in safe hands, but accidents do occur which is why Professional indemnity insurance is a necessity for all Accountancy firms.

Financial advisors are required to take out PI as they are often responsible in making financial decisions for high net-worth clients, therefore any substandard guidance can cost the client to lose large sums of money. If a client considers their Financial advisor or acting in a negligent manner and they are not in possession of Professional indemnity insurance, the costs involved could be astronomical.

Business consultants are responsible in working with clients to help with their Business strategies and drive their business forward. This is why it's also important for Business consultants to protect themselves with Professional indemnity insurance, as wrong piece of advice could potentially lead to a business regressing, resulting in a hefty claim filed against them.

Architects should also ensure they have adequate cover in the form of professional indemnity insurance as it will protect them against potential mistakes made during a project, which can be a great danger particularly  when it comes to large projects run over a period of time.

Copyright All Rights reserved