Professional Indemnity Insurance is a form of liability insurance. It is also known as professional liability insurance and, in some cases, it is referred to as errors and omissions insurance or malpractice insurance, as this is what it primarily deals with.
Professional Indemnity Insurance protects your business in the event of breach of professional duty. It helps to safeguard those who provide professional advice and those who provide services, from bearing the full cost of defending against a negligence claim made by a client and from damages awarded in such a civil lawsuit.
Traditionally, the types of professions that require this type of insurance are engineers, architects, solicitors, the medical profession, insurance brokers, accountants, consultants of various kinds and financial services- basically any business whereby the client relies on you for your professional advice or your service, in a given area.
If there has been an alleged oversight or an alleged lapse in judgement, then a client may sue for damages on the basis that the advice administered was negligent, incomplete or inappropriate.
If an individual fails to exercise his or her duty of care when engaged to provide a service to a client, he or she may be liable for losses incurred by a client and/or third parties.
Cases such as these can prove very costly, even if your business is innocent of the charge. If you find your business on the receiving end of such a legal claim, professional indemnity insurance will protect you from bearing the full cost of defending against a negligence claim made by a client, and from the cost of damages awarded. In certain cases, professional liability coverage sometimes provides for the defence costs, including when legal action turns out to be groundless.
Besides the understandable financial and reputational reasons for holding adequate Professional Indemnity Insurance, it may also be a legal requirement of your regulatory body or association such as ACCA Ireland and Chartered Accountants Ireland.Give us a call today, and a member of our friendly team will be happy to walk you through the various options available to you.
Spread the cost of your cover over 10 monthly instalments by low cost direct debit.