If you provide professional advice or services for a fee, you will need Professional Indemnity cover.
Some sectors are governed by regulatory bodies who dictate the level of cover they require and some firms are told by their clients what level of cover they must have.
Even if you do not fall into one of these categories, it is advisable to have Professional Indemnity.
It will provide legal defence costs in the first instance if a client alleges that work you have
carried out was wrong and has caused them a financial loss. If you are then found liable to
pay damages, the policy will then pay these.
What Limit should we Insure ourselves for?
If you are regulated or are part of a governing body (such as RICS or ICAE&W) then you will have comply to a certain minimum limit. Sometimes a client will ask for a certain amount. Otherwise it is sensible to get a range of quotations to consider.
Does a Professional Indemnity cover the Directors?
Only if they cause their client a financial loss whilst providing a professional service or advice. It would not cover Directors or Officers of the firm for any other loss and this should be covered under a separate Directors & Officers Liability policy.
What does a Professional Indemnity policy cover?
If covers you for any financial loss suffered by your clients should you provide wrongful or negligent services or advice. If you deny the allegations, the policy will provide Legal Defence Costs and then go on to pay any subsequent Damages if you are found liable.