PI Insurance covers the compensation costs and legal fees your business is required to pay

by DAVIS BROWN PRC Agency

Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you're alleged to have provided inadequate advice, services or designs that cause your client to lose money. However, that professional indemnity insurance does not cover you for the cost of any reputational damage that the mistakes have caused.

Do you need professional indemnity insurance?

Professional indemnity insurance should be a priority if your business provides services, advice and consultancy to clients

What is the difference between public liability insurance and professional indemnity insurance?

Public liability insurance covers claims of injury, illness or property damage by a members of the public while professional indemnity insurance protects your business against claims made by clients relating to a service or advice that you provided to them.

What does professional indemnity insurance not cover?

While professional indemnity cover protects you against claims made by clients relating to damages caused by the use of your service or your advice, it does not cover reputational damage caused.

How much does professional indemnity insurance cost?

Professional indemnity insurance premiums are usually dependent on how often your company has been involved in a legal battle and how large the business is.

How soon does my professional indemnity cover start?

You may choose when you wish the cover to begin or it will automatically start when you take out the policy.

What payment options are there with your cover?

You can pay your premiums either monthly or annually depending on what suits you best.

Is professional indemnity cover a legal requirement?

Professional indemnity coveris not a legal requirement however it is extremely useful to businesses who provide a service or advice to clients

Is professional indemnity insurance tax deductible?

Professional Indemnity policies are tax deductible. When tabulating your tax return, your premium is treated as expense in the company’s Notice of Assessment submission