Professional Indemnity Insurance
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Is IT Liability the same as Professional Indemnity Insurance
Last Updated: June 19, 2025Not exactly. While Professional Indemnity (PI) Insurance is a key component of IT Liability Insurance, the two are not identical. IT Liability Insurance is a specialised policy designed specifically for professionals in the IT and technology sector. It combines Professional Indemnity and Public Liability insurance under one tailored wording. This dual-coverage approach helps protect against a broader range of risks commonly associated with tech-based services and products. For example, a software error might result in a financial loss for a client, which is covered under Professional Indemnity coverage. At the same time, a hardware failure could cause property damage or injury (covered under Public Liability). If only one policy is in place, there may be gaps in coverage. IT Liability Insurance avoids this by integrating both protections into a single policy that reflects the real-world exposures of tech professionals. So, while Professional Indemnity covers claims for negligence, errors, or omissions in your professional advice or services, IT Liability goes further, addressing the unique blend of liability risks faced by those working in IT, such as developers, consultants, managed service providers, and suppliers of software or hardware. If you work in tech and are asked to hold Professional Indemnity, you will...
When do I pay my Deductible (Excess) in a Professional Indemnity Claim
Last Updated: June 19, 2025In a Professional Indemnity claim, your excess, also referred to as a deductible, is usually payable once the insurer begins incurring costs related to your claim. This may include legal expenses, investigations, or settlement payments, depending on the structure of your policy. There are two main types of excess: Costs ‘Inclusive’ means your excess applies to both defence costs and any settlement amount. You may be required to pay your excess early in the process, once legal expenses begin. Costs ‘Exclusive’ means your excess only applies if the insurer pays a settlement or judgment. In this case, you may not need to pay your excess unless the claim results in a financial payout to the other party, saving you from having to pay your excess towards defence costs incurred on the claim. We will review your policy wording with you and explain when and how your excess applies, so you know what to expect if a claim arises.
Can I change ProfessionaI Indemnity Insurers mid-policy
Last Updated: June 19, 2025Yes, it is generally possible to change insurers at any time, including during the policy term. However, unless there are issues with your current Professional Indemnity policy, it is usually best to wait until your renewal date to avoid cancellation fees or other costs associated with changing mid-term. There may be some viable reasons to change your Professional Indemnity insurer mid-term. These include: Your business operations have changed, and your existing insurer is unable to cover the new work You require a higher level of cover than the insurer is able to provide to you You start operating in a geographical area that the insurer is unable to provide cover for – i.e. a contract is signed for work in North America Before making any changes, it is essential to consider how your previous work will be covered and ensure that the new insurer has an appropriate retroactive date to cover your past work. We can help review your situation and guide you through your options, ensuring a smooth transition and that your cover remains suitable for your business requirements.
What is the difference between Professional Indemnity Insurance & Public Liability Insurance
Last Updated: June 19, 2025Professional Indemnity (PI) and Public Liability (PL) are both important insurance covers, but they protect you in different ways. Professional Indemnity Insurance covers claims that arise from the advice or services you provide, like an error in a report, a design flaw, or a breach of professional duty. This cover is essential for consultants, designers, engineers, and anyone offering professional expertise. Public Liability Insurance, on the other hand, covers injury or property damage caused by your business activities, like someone tripping over something in your office or damage caused to a client’s property during a site visit. In many cases, professionals will need both types of cover. Professional Indemnity protects your work, while Public Liability protects your day-to-day operations and activities.
What is Professional Indemnity Insurance
Last Updated: June 19, 2025Professional Indemnity Insurance (often called “PI”) is designed to protect professionals who provide advice or services to clients. If someone claims your advice caused them financial loss or harm, this cover can help with legal costs, investigation expenses, and even compensation payouts. It’s particularly important for consultants, designers, engineers, and other service-based businesses where mistakes, omissions, or breaches of duty can have a ripple effect. Even if the claim has no merit, you’ll still need to defend yourself, and that can be expensive. Most PI policies operate on a “claims made” basis, meaning the policy must be active when the claim is made, not when the work was done. Keeping continuous cover is critical. To obtain a quote or learn more about professional indemnity insurance, please get in touch with our team.