Professions which can cost Professional indemnity
insurers a great deal of money
Need a professional
indemnity quote? You can get one from the PII Hub!
indemnity insurance, also known as 'PI' or Professional
liability cover, refers to policies which covers claims
made against professionals due to problems in the work
they have provided. For example: A business can have a
claim made against them due to their negligence or poor
standards of work, which as a result, has led to their
clients losing money or damaging their reputation.
Although it's not compulsory for most businesses to take out
professional indemnity insurance, it's strongly advised
as it can provide valuable security, especially for
small businesses. Not only does PI protect businesses
against client's compensation claims but will also cover
the expensive legal costs involved. There are certain
professions which will benefit greatly from taking out
PI and are known to make huge claims on their insurance
because of the nature of their profession:
Journalists are in high risk of having claims made
against them as they are responsible in producing
published content that are often seen by a large
audience, therefore they need to be veracious about
facts before releasing them. If false information is
released, legal disputes are almost certainly going to
occur and the journalist could be in trouble for slander.
Destroying the reputation of a business or individual by
distributing false information about them can be a grave
matter as it can lead to them losing out on business,
money and the respect of others.
Accountants are also at a high risk of having claims
made against them if their carelessness impacts their
clients in a negative way. Some common examples of
negligence include: failure to lodge tax returns which
leads to a client losing tax repaying and interest, or
failing to spot a serious fraud due to inadequate audit
Accountants are highly trusted professionals therefore
it's their duty to ensure clients are in safe hands, but
accidents do occur which is why Professional indemnity
insurance is a necessity for all Accountancy firms.
Financial advisors are required to take out PI as they
are often responsible in making financial decisions for
high net-worth clients, therefore any substandard
guidance can cost the client to lose large sums of
money. If a client considers their Financial advisor or
acting in a negligent manner and they are not in
possession of Professional indemnity insurance, the
costs involved could be astronomical.
Business consultants are responsible in working with
clients to help with their Business strategies and drive
their business forward. This is why it's also important
for Business consultants to protect themselves with
Professional indemnity insurance, as wrong piece of
advice could potentially lead to a business regressing,
resulting in a hefty claim filed against them.
Architects should also ensure they have adequate cover
in the form of professional indemnity insurance as it
will protect them against potential mistakes made during
a project, which can be a great danger particularly when it
comes to large projects run over a period of time.
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