For more information regarding professional indemnity insurance please visit Professional Indemnity Insurance
Put simply, professional indemnity insurance is mistakes insurance. It covers you if you provide specialist advice, designs, plans, or consultancy and allegations that your work isn’t up to scratch.
So to summarize professional indemnity insurance, it covers the costs of compensation if the clients allege that your work has caused them to lose money. In addition to compensation, it’s also important to remember that the policy also includes defence costs. So what that means is that in certain situations, allegations of negligence against you may be completely unjustified. So the professional indemnity will defend you against those allegations of negligence.
So a tactical litigation is when there’s there’s no merits to winning or losing a a case. Um we’re seeing it a lot in professional indemnity terms. Um an outcome for a client may be that they want to avoid paying your fees. So they tactically alleged that your work is not up to scratch. It’s not because they actually believe that you’ve been negligent. It’s simply a tactical way to avoid paying your invoices or your outstanding fees.
PI is compulsory in certain industries. Historically, PI was designed to pro protect the consumer. So, the best example is when you buy a house, you get a house surveyed. If your house was to fall down the next day, the surveyor would be liable if they advised you that the house was structurally sound. So for certain industries such as accountants, surveyors, um insurance brokers where you have a professional body, they can often make professional indemnity compulsory. For other industries such as technology and media, it’s not compulsory but highly advised.
For more videos and information, please visit www.whinneyinsurance.co.uk.
