4 reasons why your business needs Professional Indemnity Insurance
You work in a highly skilled, detail-oriented industry and are expected to provide a quality service that is free of errors. Despite your expertise, the reality is that not all projects are error-free and mistakes can occur. Even the smallest error can have serious consequences. If a client believes damages are due to a mistake on your part, they could sue.
It is important to protect yourself against this potentially devastating liability. A professional indemnity (PI) policy will cover these costs in the event of such a claim, which may otherwise financially cripple your business. Detailed below are four reasons why you may need to consider a PI policy for your business.
- You offer advice
If you give advice on work including design, specification, certification, fixtures or fittings – you’re liable if anything goes wrong.
Professional indemnity insurance protects you against legal action due to a negligent acts, errors or omissions, as well as slander or breach of contract.
- You have employees
It’s not just you that may make a mistake, your employees can and unfortunately your business would be liable. For example, you or an employee may have advised one of your customers to use a certain type of LED light fitting and bulb to save on energy bills.
If this fitting did not save the money as promised, you could be liable for the rectification work and also have to compensate the client for the original amount they did not receive after following the advice.
- You are looking to secure new contracts
PII is contractually required by some customers so not having it could result in you missing out on potential new business.
- You are (or are looking to become) a NAPIT member
Many professional bodies and organisations make it a formal requirement for their members to hold and maintain professional indemnity insurance. For instance, professional indemnity insurance is a condition of your NAPIT membership.
When the future of your business and your people are dependent on the advice and guidance you provide to clients, ensuring you have adequate protection is critical. If you would like a free review of your insurance to make sure you are covered get in touch.
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