Do I Need Professional Indemnity Insurance?

If you can answer YES to any of the following questions, it’s worth thinking about Professional Indemnity Insurance:

• Does the company provide advice or professional services?
• Does the company provide clients with designs?
• Does the company want to protect against allegations of mistakes or negligence in work undertaken for its clients?
• Has a client of the company requested the company hold Professional Indemnity cover in order to undertake a contract?
• Is the company in an industry, association or regulatory body that, as part of membership, requires you to hold Professional Indemnity cover?

Professional Indemnity (PI) insurance will look to cover the policy holder’s legal costs and expenses when defending a claim, as well as any costs or damages that may be awarded, if the company are alleged to have provided inadequate advice, services or designs that causes their client to lose money.

Policy Basis and Retroactive Cover

Professional Indemnity Policies are written on a CLAIMS MADE BASIS meaning that, unlike most other insurances, historical work is covered back to a RETROACTIVE date. This could be the date the company was established, start date of a contract or insurance commencement date.

There are also policies in the market that offer a retroactive date of ‘None’. This negates the need for a set date but will cover only as far back as the company establishment date.

Retroactive cover will be subject to continuous cover being in force from the Retroactive Date to the date of a claim.

Limits of Indemnity and basis of cover

Limits of indemnity can be tailored to a company’s needs, once chosen the limits are written on one of the following two basis:

1. Any one claim – each claim will have a limit of its own, set at the limit of indemnity.
2. Aggregate limit – each claim will come out of the limit of indemnity until that limit is exhausted.

If you would like to discuss how Omni Davis can find the right insurance for your business, property, car or home please contacts us on:

Tel: 01403 785775 or 01243 864018

Email: info@omnidavis.co.uk