Types of Professional Indemnity Insurance

Many people do not realise that professional indemnity insurance is different from public liability insurance. However, there is a difference and it is very important to understand what that is, so you do not end up being under or over insured.

Public liability insurance covers you for injury to members of the public that you cause during the course of your doing your job. It also covers you for any damage you cause to other people's property whilst carrying out your work.

Professional indemnity insurance is very different. It is designed for companies that offer advice or a service to the public. If, as a result of taking your advice or using your service people experience a loss they can claim for the cost of that loss from you via your PI insurance.

Who Needs Professional Indemnity Insurance?

For professions such as solicitors, accountants, architects, insurance brokers and financial advisers, professional indemnity insurance is compulsory. Without proper insurance, these professionals cannot operate in the UK.

However, many other professionals take out this type of insurance voluntarily. IT consultants, estate agents, engineers and many other professionals decide to take out this type of insurance. Doing so protects them and their assets and it can help them to secure business from customers who are only willing to deal with professionals who have this type of insurance.

Tips for Buying Professional Indemnity Insurance

When buying PI insurance it is important to shop around to get the best deal. You need to do your research to make sure that you buy adequate cover. It is important to make sure that the PI cover you buy covers the cost of all damages awarded to a 3rd party as well as all legal fees relating to the claim.

The easiest way to research professional indemnity insurance is to use the internet. On-line you can read up about the types of PI insurance that are available. Once you are sure about the type of cover you need you can also use the web to ask for quotes from various firms to find the best possible deal.