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What is Professional Indemnity Insurance?

Professional indemnity insurance is an important cover for businesses that give advice or provide a professional service to clients. It can pay for compensation claims and legal fees that may arise if a client suffers a financial or professional loss due to negligence in your work.

Do I need a Professional Indemnity policy?

If your business gives advice, offers a professional service, or handles data or intellectual property belonging to a client or business, you may need professional indemnity insurance. This cover protects you against the cost of a claim for negligence or a mistake that leaves the client out of pocket.

Even if you’ve done nothing wrong, the cost of defending yourself against these claims can be very high. Professional indemnity cover can help protect you and your business against this risk.

How much does a Professional Indemnity policy cost?

The cost of a professional indemnity insurance policy depends on factors such as the level of cover you choose and the type of work you do. Insurers predict how likely you are to make a claim and how much a claim could cost. Typically, businesses that face higher levels of risk pay more.

Professional Indemnity Cover

 Data protection and copyright breaches

 Defamation

 Breach of confidentiality

 Business equipment

 Loss of documents

 Bodily injury (from breach of professional duty)

 Dishonesty of employees

 Court attendance costs

 Public liability

 Employers’ liability

Claims Examples

  • A photographer is shooting senior photos for a client. As the family walks into the studio, the mother trips over the cord for the flash and falls to the ground, breaking her collar bone. The family sues the photographer for $75,000 in medical damages.
  • An advocate for animal rights who is a strict vegetarian brought a claim against a company that manufactures nutritional supplements claiming battery and consumer fraud. The claimant alleges the packaging of the supplement fraudulently states that its nutritional supplement is vegetarian, when it actually contains animal products or by-products. The claimant threatened to file a class action suit against many companies engaged in false labelling. The claim is being settled.
  • A restaurant is sued when a produce deliveryman slips on the wet floor of the freshly mopped kitchen. Tomatoes go flying everywhere, but the real damage is done to the deliveryman’s shinbone, which he breaks smashing it into a table. He sues the restaurant for $100,000 in medical costs, lost wages, and other expenses.

Why Choose Dpi Insurance?

  • We only use A Rated Insurers
  • Preferential Rates lowering your premiums
  • Family Run Business
  • Dedicated Claims Department
  • Bespoke Packages available tailored to suit your business
  • Pre-Priced Proposal Forms
  • Limits up to £10,000,000
  • Friendly and Experienced sales staff
  • Free Risk Assessments