Why you need Professional Indemnity Insurance

You should consider taking out professional indemnity insurance if your business gives advice or offers a professional service to other businesses. It covers you if you are negligent or make a mistake which causes a client’s business to suffer financial loss.

Traditionally, people like Accountants, Surveyors, Engineers, Solicitors and Architects, the ‘traditional’ professions, were regarded as ‘professionals’. But the times have changed and there is now a long list of people who provide a service and are considered to be professionals. A professional is now often regarded as any person who offers ‘specialist advice or service’.

The professional person must exercise whatever degree of skill and care is reasonably expected of any competent practitioner in that profession at that time. If a person provides advice or a service to another and carries that work out negligently, they can be held legally liable for the consequences. (Breach of duty of care or a breach of contract). A Professional Indemnity Policy will cover you for an alleged neglect, error or omission by your client.

In the current economic climate clients will not hesitate to pursue a claim if they feel that they have received poor advice or service. The need for Professional Indemnity Insurance has never been greater.


Agricultural consultants – Incorrect advice regarding pesticides led to damaged crop. Claims are not uncommon. Some insurers worry about the pollution exposure.

Bailiffs – Seized and disposed of goods belonging to incorrect party. Firms with multiple claims are normally avoided.

Freight forwarders – Goods damaged in transit, allegedly due to insured’s failure to take adequate precautions.

Interior designers – Client is unhappy as the colour scheme and furnishings are not as they expected. Client insists the insured begins the project again using a different colour and furnishings.

Safety consultants – Certification errors causing injury – e.g. lifts, industrial machinery, play equipment, fairground rides. Dangerous goods being carried improperly causing injury.

Trade association – Libel claim following ejection of member. Negligent advice to members of public regarding the trade’s products or services.

Yacht surveyors and brokers – failure to spot a defect when surveying a vessel for a purchaser or mis-describing the output of a yacht’s engine. Marine surveyors are regarded as high risk whilst pure yacht brokers are seen as low risk.

Our Testimonials Page provides many examples of professionals who have had a great experience taking out Professional Indemnity Insurance with us.