Professional indemnity insurance is a type of insurance policy designed to protect professionals from financial losses due to claims of negligence, errors or omissions in their work. It is also known as professional liability insurance or errors and omissions insurance.
Professional indemnity insurance is typically required for certain professions, such as lawyers, doctors, accountants, architects, engineers, and consultants. It can also be important for businesses that provide professional services, such as software development or web design.
Professional indemnity insurance covers the costs of legal fees, settlements, and judgments if a client files a lawsuit against a professional or business for negligence, errors or omissions in their work. It can also cover the costs of defending against a claim, even if the claim is ultimately found to be groundless.
Professional indemnity insurance policies may include several types of coverage, such as:
- Breach of confidentiality: This covers claims of breach of confidentiality or data protection.
- Intellectual property infringement: This covers claims of infringement of intellectual property rights, such as copyright or trademark.
- Defamation: This covers claims of defamation or libel arising from the insured’s professional activities.
The cost of professional indemnity insurance depends on several factors, such as the profession, the level of coverage, the size of the business, and the claims history. It’s important for professionals and businesses to work with a reputable insurance provider to find the right policy and ensure adequate coverage.