What is Professional Indemnity Insurance?
Professional Indemnity provides protection against claims for losses which have occurred to a third party as a direct result of bad professional advice provided by your business.
What does Professional Indemnity Insurance cover?
Professional Indemnity Insurance may cover your business defence and legal representation; it may also cover claims, settlements, judgements and investigation costs awarded against you as a result of bad professional advice.
Professional Indemnity Example
You operate a small business advisory firm, providing professional advice in getting small business back on their feet.
You have been recently hired you to help identify growth opportunities at a struggling business and you have made a recommendation that selling a particular product would provide a profit to their business of a prescribed amount.
After a while, it was determined the advice you provided failed to live up to expectation, product sales were poor leaving your customer worse off and they have lodged a claim against your business for their loss.
Professional Indemnity Insurance provides you with the necessary cover to defend the claim and settlement.