{"id":2707,"date":"2019-01-17T10:44:34","date_gmt":"2019-01-17T10:44:34","guid":{"rendered":"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/?p=2707"},"modified":"2019-01-17T10:44:34","modified_gmt":"2019-01-17T10:44:34","slug":"who-needs-professional-indemnity","status":"publish","type":"post","link":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/blog\/who-needs-professional-indemnity\/","title":{"rendered":"Who Needs Professional Indemnity: 10 Reasons it may be right for you"},"content":{"rendered":"

If a company is providing advice, design, skills or knowledge in a professional capacity, or handling intellectual property, they are wholly responsible for getting it right. Professional Indemnity (PI) covers the insured against their legal liability to compensate third parties for injury, loss or damage due to a breach of duty in the conduct of their profession.<\/span><\/p>\n

The real question is, who needs professional indemnity?<\/strong> If you work for a company like this then its likely you could benefit from a professional indemnity policy.<\/span><\/p>\n

Here are 10 reasons why you may need PI insurance:<\/span><\/p>\n

    \n
  1. Mistakes can happen
    \n<\/strong>Companies will avoid mistakes and give the best advice or services possible to ensure good client relationships. However, mistakes can happen, leaving the company open to large legal costs and compensation claims. Negligence is a core cover for PI and would provide protection against allegations made.<\/span><\/li>\n<\/ol>\n
      \n
    1. Compulsory or optional?<\/strong><\/span>
      \nFor many professions, such as chartered accountants and chartered surveyors, it is a regulatory requirement to have PI insurance to practice. Not having this cover could mean a business being stripped of its regulated status, making it difficult to operate.<\/span><\/li>\n<\/ol>\n

      \"Who<\/span><\/p>\n

        \n
      1. Intellectual property<\/strong><\/span>
        \nUnintentionally producing materials that infringe intellectual property rights, e.g. using online images without the owner\u2019s permission, could lead to litigation for copyright. PI can protect a company against legal costs and compensation.\u00a0<\/span><\/p>\n
        \n<\/li>\n
      2. No PI insurance, no contract<\/strong><\/span>
        \nIt\u2019s becoming more common for clients to request that PI cover is in place before a business relationship commences. Having PI gives confidence to clients that businesses are run professionally.<\/span><\/p>\n
        \n<\/li>\n
      3. Vulnerability if a claim is brought against you
        \n<\/strong>Each time a professional gives advice or offers a service for a fee, they are potentially vulnerable. From SME\u2019s to large corporations, having no PI insurance could leave a company\u2019s financial position exposed.<\/span><\/span><\/p>\n
        \n<\/li>\n
      4. Handling clients\u2019 information
        \n<\/strong>Even with adequate data protection and policy procedures in place, data can sometimes accidentally get lost. PI would cover the cost to replace or restore any damaged, distorted, erased or mislaid documents including electronic or digitised data.<\/span><\/li>\n<\/ol>\n

        \"\"<\/span><\/p>\n

        \n
          \n
        1. Employee negligence
          \n<\/strong>Even with an extensive training programme for new and experienced staff, the way employee\u2019s carry out their work activities is ultimately beyond the company\u2019s control. This could leave the company exposed to liability claims. PI cover gives peace of mind in the event of an employee\u2019s negligence.<\/span><\/li>\n<\/ol>\n
            \n
          1. A duty of care
            \n<\/strong>Professionals could owe a duty of care to anybody who may rely on the service or advice they have provided. In today\u2019s world, clients expect high standards of service and are more inclined to resort to litigation when this has not been met. PI insurance would provide protection against such claims.<\/span><\/li>\n<\/ol>\n
              \n
            1. Peace of mind
              \n<\/strong>There\u2019s a lot to consider when running your own business, especially the responsibility of getting things right. PI cover takes away the legal and financial worries should a PI claim arise to ensure businesses continue to operate as usual.<\/span><\/li>\n<\/ol>\n
                \n
              1. Defamation cover
                \n<\/strong>PI cover will provide protection against an accidental lapse in judgement resulting in a defamation claim. For example, sharing information via social media about a client which can be perceived as negative or slanderous.<\/span><\/li>\n<\/ol>\n

                Negligent Acoustics
                \n<\/strong>An acoustic consultant failed to adequately design the acoustics of a concert hall. As a result of the negligent design, when the concert hall was fully constructed, those patrons sitting at the rear of the auditorium could barely hear what was happening on the stage. The claim was settled for \u00a335,000.<\/span><\/p>\n

                \"Do<\/span><\/p>\n

                One small spelling mistake- Big Impact
                \n<\/strong>A marketing agency was commissioned to print brochures for a client. When the brochures were printed, the agency realised that they had made a mistake in the spelling of the web address and contact details. The reprinting costs of over \u00a312,000 were met by the PI cover.<\/span><\/p>\n

                Who Needs Professional Indemnity?<\/strong><\/span><\/h1>\n

                If your business could benefit from the protection & security that professional indemnity insurance provides, get in touch with one of our expert team on\u00a00191 482 1219<\/a>\u00a0<\/strong>or visit our website to learn\u00a0more about\u00a0protecting your business with PI<\/a>.\u00a0<\/strong><\/span><\/p>\n

                To find out more about keeping your business safe from risk, why not check out another of our blogs:\u00a0How business continuity is moving towards the cloud.<\/a><\/strong><\/span><\/p>\n\n\n\n
                \"\"<\/a><\/span><\/td>\n\"\"<\/a><\/span><\/td>\n\"\"<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                This article originally appeared on\u00a0Allianz.<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                If a company is providing advice, design, skills or knowledge in a professional capacity, or handling intellectual property, they are wholly responsible for getting it right. Professional Indemnity (PI) covers the insured against their legal liability to compensate third parties for injury, loss or damage due to a breach of duty in the conduct of […]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[2,18,14],"tags":[167,97,37],"acf":[],"_links":{"self":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/posts\/2707"}],"collection":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/comments?post=2707"}],"version-history":[{"count":17,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/posts\/2707\/revisions"}],"predecessor-version":[{"id":4327,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/posts\/2707\/revisions\/4327"}],"wp:attachment":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/media?parent=2707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/categories?post=2707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/wp-json\/wp\/v2\/tags?post=2707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}