Professional Indemnity Insurance why do I need it?

If you are advising clients in any field you should think about purchasing a Professional Indemnity Insurance policy. In some cases such as Insurance Brokers and Solicitors the cover is compulsory and therefore must be purchased prior to trading.

There are two types of Professional indemnity insurance policies sold.

"Any One Claim" and "Aggregated" these are defined as:

If the limit is ‘any one claim’ this means that the most that the insurer will pay out per claim is the limit specified. You could have several claims in the same policy period and whilst each would be subject to the specified limit there would be no overall limit.
If the policy is on an ‘aggregate’ basis then the limit is the maximum that will paid out in the policy period irrespective of the number of claims you may have.
Limits of professional indemnity insurance differ according to each and every trade, and sometimes the difference between the lowest levels is not that much.

Cover is available for:

Professional negligence, such as making a mistake in a piece of work for a client, or giving them poor advice
Unintentional breach of confidentiality and or copyright
Loss of documents or data
Defamation and libel

Examples of companies that need this cover are:

Accountants
Bookkeepers
Solicitors
Insurance Brokers
Teachers
Trainers
Designers, Internet & Graphic
Printers
Estate Agents
Lettings Agencies
Town planners
Engineers
Independant Financial Advisors
Consellors
Health and Safety consultants
Chartered Surveyors
Construction companies
Auditors
Architects
First Aiders
Acoustic consultants
Fire & Security Consultants
Publishers
SEO Marketing Consultants
Mortgage Brokers

Source: Dave Burn who is an insurance broker

Looking for Professional indemnity Insurance? Take a visit to the jml insurance website and see the advertisement pages for Professional indemnity Insurance companies; http://www.jml-insurance.co.uk/types.php?id=45&sec=9