How Professional Indemnity Can Cover Common Risks

If you’re operating a business, no matter how large or small, it could be advisable to have professional indemnity, also known as professional liability insurance. There are many challenges and risks that you can face in the professional world, and some mistakes and errors can set you back in terms of time, money and reputation. Some might be more obvious, but others you might not have thought about. So what are some of the common risks in business that can be covered through a suitable professional indemnity insurance policy?

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Bad or Wrong Advice

Professional indemnity is all about providing cover when offering professional services, and this includes giving expert advice. If a client acts on advice you’ve given them, such as from a consultancy standpoint, and it has a negative impact on their business, then they may go down the legal route to make up for the bad, wrong or misguided advice that your business has provided. Having professional indemnity insurance can cover for this risk.

False Claims

Whatever business you’re operating, you’re likely to eventually come across a bad customer. Whilst some customers may have legitimate grievances with a member of staff or your business, other customers may start making false claims about your business. This could be through the form of bad online reviews, which could harm your reputation and your lead generation, but it could also be in the form of a legal complaint, which can be costly. Professional indemnity can ensure you’re protected from legal costs, and even to loss of income as the result of fraudulent and false claims through libel, slander and/or defamation.

Handling Client Information

No matter whether you’re a B2B or B2C company, handling client information and data will be a common practice, which needs to be done with care. Even if it’s not highly-sensitive data, businesses still have to comply with data protection and GDPR laws. If client information is misused, stolen or lost, then your company can be held liable for the mishandled data. By including cover for client data in your PI insurance policy, you can protect yourself from expensive legal costs and fines.

What else professional indemnity insurance can cover

Defamation: Your client could choose to sue you if you produce or support libellous statements about them.
Copyright breaches: Infringing on copyrights, trademarks or intellectual property.
Lost or damaged documents: If you lose or damage documents that belong to your clients, they could decide to sue you.
Employee cover: If the actions of an employee cause a financial or reputational loss for your client, this will ensure your business is protected.
Legal defence costs: If your client takes you to court, this will cover the costs that you could incur.
Fraud and dishonesty: If your client considers that your business has acted in a fraudulent or dishonest way, this will provide protection.

These are just examples of some of the types of professional indemnity insurance cover that we can arrange at The Yorkshire Broker. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.

How much does professional indemnity insurance cost?

At The Yorkshire Broker we understand that cost is important to your business, but it is crucial to ensure that you are properly protected in line with the risks your business faces. With that in mind, we will take the time to understand the specific needs of your business and recommend the amount of professional indemnity insurance cover that is best suited to you.

How The Yorkshire Broker Can Help

By working with The Yorkshire Broker, we can work with you to create a professional indemnity insurance policy that works best for your business. It will take into consideration the unique risks and challenges you face on a day-to-day basis, allowing you to have cover that protects you for everything you need it to, with the right level of cover too. By going to an insurance company directly, you may receive a policy that isn’t best suited to your business, where you’d be paying for things you don’t require, as well as possibly not having the correct cover in other areas. Instead, by working with an insurance broker like The Yorkshire Broker we can help to craft a bespoke PI insurance policy for your company or organisation.

How Professional Indemnity Can Cover Common Risks

Insurance Made Personal

Bad or Wrong Advice

False Claims

Handling Client Information

What else professional indemnity insurance can cover

How much does professional indemnity insurance cost?

How The Yorkshire Broker Can Help

Insurance Made Personal

Products

Industries

Information

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