Understanding professional indemnity insurance can be challenging, but we’re here to guide you through it and simplify the process.
Even the most skilled professionals can make mistakes – it’s just part of being human.
No matter your level of experience or how well-intentioned your actions are, there’s always the risk of a misstep. That’s where professional indemnity insurance comes into play, particularly for those offering advice or services in return for payment, either directly or indirectly.
So, what is professional indemnity insurance? It’s a type of insurance designed to safeguard you from financial liability in case you’re held responsible for certain kinds of mistakes:
- An actual act of negligence, mistake, or oversight; in other words, if you unintentionally cause harm or financial loss due to an error in your professional service.
- An alleged act of negligence, mistake, or oversight; this means that even if you’re accused of a mistake but didn’t actually commit one, your insurance can still provide coverage.
Simply put, professional indemnity insurance is your safety net in case a mistake occurs. It allows you to focus on what you do best, with peace of mind knowing that you’re financially protected if you need to defend your professional actions.