23/02/2022
Professional Indemnity Insurance: What does it cover?
Even if you deliver your professional services perfectly, there’s still the possibility you could end up with a claim made against you down the track. For example, if your client suffers a loss from your services purely because they misunderstood your advice, there’s always a chance you’ll win in a lawsuit — but who is going to foot the bill for your legal expenses? This is where PI comes in.
Professional Indemnity Insurance covers expenses and damages payable relating to:
Client losses due to misinterpretation of or incorrect advice.
An accidental mistake made by yourself or your business representatives. For example, reporting an incorrect figure, forgetting to lodge a document, or losing important records.
Confidentiality breaches and defamation. Such as accidentally giving away sensitive information relating to your client.
Breaching intellectual property rights. Like if you were to unintentionally allow your client use of images belonging to someone else.
Rebuilding your brand reputation. If your business has received some bad coverage in light of the claim against you, PI can cover the costs of public relations services to rebuild your reputation.
Court attendance costs/legal expenses. Costs incurred while investigating and defending claims made against you, as well as damages paid.
