What is Professional Indemnity Insurance?
Professional Indemnity Insurance 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 Insurance Example
You are a mobile mechanic and one of your customers asks if their tyres are going to make it through the next holiday. Not to disappoint your customer, you tell them that their tyres are fine but recommend they be replaced upon their return.
Unfortunately the customer had an accident during their holiday where their vehicle ran off the road and into a ditch, thankfully the customer was able to walk away from the accident unscathed.
An independent investigation into the accident determined the tyres were the cause of the accident and a claim has been lodged against your company for the repairs or replacement of the vehicle.
Your Professional Indemnity policy has you covered on this claim.