Professional Indemnity insurance is a specific type of insurance designed to help cover the significant legal costs of professional negligence to give faulty advice, asset design and defamation. The insurance helps cover the claims for compensation that the business could be legally liable to pay, as well as the costs of defending the claim. These costs can include professionals such as lawyers, consultants, architects, brokers, and accountants.
- Legal costs Compensation
- Legal fees
- Civil claims
- Loss of documents.
A web designer negligently used images he didn’t own or has the rights to use on a website he was building, the image owner claimed copyright and the web designer was taken to court. Using Professional Indemnity, the web designer was able to cover the legal costs and settlement.
When a major retailer accidentally leaked hundreds of customer’s private details they were liable for damages. Having professional indemnity insurance helped cover any legal costs that occurred form the event.
Apex Accountants prepared wrong financials by error and enabled Smith &Sons to get a business loan, but when sued by the financer and Apex Accountant was found legally liable to pay huge legal fee and costs. The professional Indemnity for the accountant came to the rescue and he could continue his business.