Do I need Professional Indemnity Insurance and What does it cover?

Apr 16, 2020
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Professional Indemnity Insurance Manchester is an integral part of any business and can cover you against compensation claims. Professional Indemnity Insurance covers claims made by a client because of a mistake that has been made in the work carried out by that business. This almost always includes the financial loss that the client has also suffered as a result, which can amount to quite a lot, especially with legal fees added.


Professional Indemnity Insurance covers mistakes including professional negligence, unintentional breaches of contract including, confidentiality or copyright, as well as loss of documents or data. In what can be seen to be small errors at the time can prove hugely expensive, so it is important to safeguard yourself against any claims that may arise.


Whilst Professional Indemnity Insurance covers you financially for a mistake, it doesn’t cover for the cost of any reputational damage it may have on your business.


A lot has been said around whether Professional Indemnity Insurance covers against bodily damage. In some respects yes it does. Bodily injury is only covered if the injury was caused by negligence on your behalf during your contracted work. Ultimately, Professional Indemnity Insurance covers financial loss, personal injury and property damage because of your negligence, error or omission whilst contracted.


Although, Professional Indemnity Insurance isn’t required by law, it is important that your business has the right policy in place so that it doesn’t suffer from financial loss, and in some cases cause bankruptcy.


Your insurance provider should be able to help you determine exactly how much cover you need based on your business and its risks. Seek out a specialist insurance provider, which can be found in any business directory, who will tailor-make your insurance policy to you so you can have added peace of mind.

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