Professional Indemnity Insurance 5 Key Reasons To Have It

Professional Indemnity Insurance


Professional indemnity insurance is one of the top types of insurance that business owners and freelancers should have. It protects you in a number of situations, from accidentally offering bad advice to a client to unintentionally infringing on someone’s intellectual property. While you might think that you will never find yourself in a litigious situation, you never really know when something unexpected could occur. Here are the top reasons for taking out professional indemnity insurance.

  1. It’s Required for Some

Some people will discover that PI insurance is a regulatory requirement for their profession. If you’re a chartered accountant, a chartered surveyor or in a similar professional role, you need to have professional indemnity insurance. If you don’t have it, it could mean that your business isn’t allowed to hold its regulated status. You should check to see if you’re required to have it if you don’t want to get caught out.

  1. Everyone Makes Mistakes

You might be confident in your professional skills and experience. You think that it’s very unlikely that anything could go wrong and you would have to pick up the bill. However, no one can ever truly predict the future, and everyone is capable of making mistakes. If you accidentally do something wrong, knowing that you have appropriate protection is extremely reassuring. You won’t have to worry about the potential financial impact that could result from a single mistake.

  1. Give Your Clients Confidence

Showing your clients that you have professional indemnity insurance helps to reassure them. They will often have greater confidence in you when they see that you’re responsible and prepared enough to protect both you and them by taking out insurance. In fact, some clients will require you to have PI insurance as part of your contract. You don’t want to miss out on valuable work because you’re not prepared to take out insurance. You can increase your business opportunities by protecting your business.

  1. Get Protection Against a Variety of Claims

Professional indemnity insurance protects you in a range of situations. It can help you if you accidentally give bad advice, misuse someone else’s intellectual property, lose someone’s data, or make any kind of mistake. It also protects you in the case of a defamation claim or if one of your employees acts unprofessionally. With only one insurance policy, you can ensure you’re covered for all kinds of potential incidents. It’s better to be safe than sorry.

  1. Ensure Peace of Mind

Being a business owner can throw up many things that are enough to keep you awake at night. Maybe when you’re not worrying about money, you’re wondering when you’re next going to be able to take a holiday. One thing you shouldn’t have to worry about is paying out of pocket for something that goes wrong or even losing your professional status. Professional indemnity insurance gives you peace of mind so that you don’t need to worry.

Take out professional indemnity insurance if you’re a freelancer or small business owner, and protect yourself and your business.