What is Professional Indemnity Insurance?

Any business that provides expert services, consultancy or advice is at risk of clients seeking compensation for alleged negligence. Professional Indemnity Insurance (PII) protects against this liability.

Why take out Professional Indemnity Insurance?

In this increasingly litigious world, claims against professional businesses are getting more commonplace. The cost of claims can be substantial when you add legal costs, damages and rectification. Having PII is no replacement for good practice with robust checks and systems, but it can be an important part of your risk management armoury.

What does Professional Indemnity Insurance cover?

PII covers businesses for claims by clients arising against them as a result of work carried out on behalf of customers. In addition to financial losses a client could also claim for breach of confidentiality, breach of copyright, defamation and loss of documents.

Is Professional Indemnity Insurance (PII) a legal requirement?

PII is not a legal requirement, but for a number of professions, their regulatory bodies insist upon it. This includes legal, accountancy, surveyors, architects and financial advisors.

What about claims arising from historic advice?

Professional Indemnity Insurance is unlike other insurances in this respect. When a policy comes into effect, the policy will cover claims arising from a “retroactive” start date from which the client has had continuous PII cover. If the client is aware of any live issues or likely issues that might give rise to a claim, then it would need to declare these before a new policy comes into force, and the liability would remain with the insurer whose policy was in force at the time of the claim. In practice, if there are outstanding claims, it is unlikely that we would be recommending a change of insurer.

Why choose Pelican for your Professional Indemnity Insurance (PII) cover?

PII can be a very complex area, and specialist advice is critical. At Pelican, we have the experience and expertise to guide you through the process and ensure you have appropriate cover.

Making a claim is a potentially stressful and time-consuming process – this is especially the case where an allegation of professional negligence has been made. At this point, having a broker you can trust at your side makes all the difference.

We have the desire and know-how to alleviate your stress, help fight your corner and secure a fair outcome.

Finally, of course, you would receive the legendary friendly and exceptional service from the fabulous team at Pelican!