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Professional Indemnity Insurance
Professional Indemnity Insurance2023-05-26T13:00:34+01:00
Why you need Professional Liability Insurance Cover
As a professional, any advice that you provide your clients is potentially legally binding.
Professional indemnity (PI) insurance has been developed to protect you and your business in the event of a client making a claim against you as a result of non-performance, breach of duty of care or professional negligence. Our professional indemnity cover can provide comprehensive cover at competitive premiums. The policy protects your business from potential financial catastrophe, so you can work worry free. It can help protect your business from potential financial catastrophe and reputation damage from dissatisfied clients.
The policy is tailored specifically to cover the work carried out by managing agents, which results in competitive premiums. For example, most agents do not carry out surveys themselves, so at Gallagher survey cover is optional.
What are the benefits for managing agents?
The policy is specific to the work carried out by managing agents, which results in competitive premiums. For example, managing agents may not conduct surveys themselves, and yet some PI policies automatically charge for this in the cover.
At Gallagher, we believe companies should not pay for cover they don’t need. If required, surveys can be included as an additional option.
Key features of a Professional Indemnity Insurance policy
There are a range of cover options available from our well-known panel of providers*:
Damages, costs and/or expenses incurred arising solely in the performance of, or failure to perform, managing agent services.
Fraud and Dishonesty
Damages, costs and expenses incurred up to the date of discovery.
Libel or Slander
Indemnifies the insured against legal liability in respect of libel or slander (defamation in Scotland).
Estate Agents and Health and Safety Legislation
Defence costs for litigation incurred under this legislation.
Cover for final and binding award or determination of an ombudsman appointed under a recognised scheme.
Damages arising from infringement of third party intellectual property rights.
Payment to the insured for attendance at a recognised court.
Loss of Documents
Cover for reasonable pre-approved expenses following the loss of documents solely in the performance of, or failure to perform, managing agent services.
Copyright, intellectual property rights
Unintentional breach of copyright and intellectual property rights.
Actual or alleged dishonest or fraudulent act or omission committed by an employee of the insured.
Meets trades association requirements.
Optional extension: Survey, valuation & insurance work
Standard cover excludes claims arising out of, based upon or attributable to any survey, valuation and insurance work performed for any client.
Additional options are available to tailor the cover to your exact needs:
Whether you work from a home office or separate premises, protect your business equipment such as computers, office furniture and documents, from risks such as theft, fire and water damage, even if the contents are temporarily away from the workplace.
If you own the building your office is located in, we offer competitive rates for standard risks, such as storms, floods and fire, as well as accidental damage.
Motor and Fleet
As part of Gallagher, we can offer competitive cover for individual vehicles and motor fleets, all in one policy.
Commercial Directors & Officers
As a director you could be exposed to personal financial risk if you fail to undertake your duties to a satisfactory standard. Protect yourself with our competitive insurance rates.
How do I arrange cover?
If you think it’s time to get or compare cover, getting a quote is easy. Call Gallagher and we will send a proposal form for you to complete and return. Or visit www.ajg.com/agents where you can download a proposal form. Send your completed form to us at UKagents@ajg.com or call free on 01202 449612.
For a copy of our guide to professional indemnity (PI) insurance* and the cover the policy provides, click here
*As with all insurance policies, the policy is subject to limits, conditions and exclusions. For full terms and conditions please refer to the policy wording available on request. This document does not purport to be comprehensive or to give legal advice. While every effort has been made to ensure accuracy, Gallagher cannot be held liable for any errors, omissions or inaccuracies contained within the document. Readers are always recommended to take further professional advice before making any decisions.
Frequently Asked Questions
Who needs professional indemnity (PI) insurance?
Professional indemnity insurance is for any person or business, who as part of their work provide advice to their clients. If this turns out to be wrong (or even just alleged to be wrong) you may be sued. This could result in potentially crippling claims against you and the costs of defending yourself. This insurance is designed to cover these costs.
Do you need professional indemnity insurance?
If you provide services and advice to clients then professional indemnity insurance, also known as PI cover, can help you and/or your business meet the costs of a client making a claim against you as a result of non-performance, breach of duty of care or professional negligence. If you are a contractor, you may find clients are reluctant or refuse to hire you without PI cover in place.
What does professional indemnity insurance cover?
Typically, PI cover can cover legal costs and expenses that might be incurred in defending claims brought against you and/or your employees, as well as any damages or costs that may be awarded against you.
What level of professional indemnity insurance do I need and how much will it cost?
There are various factors which will need to be taken into account when deciding on an appropriate limit of indemnity, including the size of the company and type of work you are doing, all of which can affect the cost of your professional indemnity policy. Some professional bodies will set a minimum level that you must have in order to be a member.
How long does a professional indemnity policy last?
These are annual policies, and they only cover you for claims made whilst the policy is in force, irrespective of when the loss occurred. This does mean that you may need to keep the policy going for a number of years.
Is professional indemnity a legal requirement?
It isn’t compulsory under law but it may be a compulsory requirement for some regulatory bodies, for example, solicitors, financial advisers, accountants and architects. You may also find that your customers on large contracts will insist that you have professional indemnity insurance in place before engaging your services.
What is the difference between professional indemnity insurance and public liability insurance?
Professional indemnity or PI insurance can provide cover for compensation claims if you’re sued by a client for negligence or a mistake made at work. Public liability insurance can cover compensation claims if a third party sues you for personal injury or physical damage to their property.
Can’t find an answer to your question? Simply email your question to us at UKinfo@ajg.com