Reassessing Your Professional Indemnity Insurance Requirements


Professional Indemnity insurance (also known as professional liability insurance) is insurance cover that is integral for any business or corporation, no matter the size. It covers businesses, especially those that offer services, products, or advice to clients and consumers, against any alleged errors made in the course of their business dealings. The policies available mainly cover professional negligence, errors or omissions, breach of professional duty and civil liabilities. This cover can come in the form of costs incurred defending a claim, settlements and compensation to clients, whilst also helping to protect your reputation, business finances, and company employees.

It allows your business and employees to work without fear that they may be the subject of a lawsuit from clients or any third party and gives them the confidence to transact their business dealings in line with your business’s best practice guidelines. 

How does professional indemnity work?


Professional indemnity insurance covers the cost of any mistakes made when providing clients and consumers with professional services. The business landscape is changing, and people want things completed faster than ever, which has the consequence that anyone is at risk of making a mistake no matter how professional or diligent they may be. Some mistakes are minor with little or no financial cost or consequence, yet there is always the possibility that a mistake made through a simple human error can lead to financial catastrophe, and not having an adequate professional indemnity insurance cover can have major financial consequences for a company, its directors or partners.

Depending on the policy purchased, your professional indemnity policy will cover negligence, errors and omissions, breach of duty and civil liability. Professional indemnity insurance should also cover the liabilities which are the result of negligence, such as business interruption and the significant legal costs incurred from being sued. More in-depth policies will also offer protection against financial loss caused by defamation, loss of paperwork, data breaches, employee conduct and unintentional breach of confidence.

How much professional indemnity insurance cover do I need?


When any form of insurance is bought, whether it is for a business or for personal cover, it is important to carefully assess how much cover your business and circumstances will need. This will be different for all businesses, and when it comes to professional indemnity insurance, it can be difficult to reliably know how much coverage is the right amount. One way of deciding how much cover your particular business needs is to think about the worst possible outcome of a reach and try to imagine the financial implications on your firm if it were to come about. From there you can begin to calculate the amount you will need to keep your business stable and your employees protected. To help do this it is integral that you understand your clients and their financial power. Are they in a position to hire top lawyers and do they also have a lot to lose if an issue were to arise? How much could you possibly stand to lose if a claim were brought against you? The other matter to weigh up is the likely cost of legal fees you might face without insurance, should you need to defend yourself. This varies from industry to industry, but bear in mind that costs tend to go up across the board for issues that are complex to resolve.

We are the right people for you

Lets work together



Although not a legal requirement, it is quite clear that having professional indemnity insurance is a key tool in your business portfolio. The world of business is changing, costs are rising and the business world is looking much different to ten years ago. Reassessing your cover, and making sure you are able to cover yourself if a claim were to be brought should be a priority. If you’d like some advice from an experienced broker on risk management and considerations for your business, contact Full Time Cover. We’ve worked with businesses throughout , offering expert, unbiased advice and support. Get in touch by calling 0207 923 4191.

We are the right people for you

Lets work together