What is Professional Indemnity Insurance?
Professional Indemnity (PI) Insurance is designed to protect professionals against claims made by clients or third parties for alleged negligence, unintentional errors, or omissions in the provision of professional services. In the technology industry this insurance is often referred to a Technology PI or Technology E&O
Professionals who may require Professional Indemnity (PI) Insurance include accountants, lawyers, architects, engineers, IT consultants, financial advisors, and healthcare professionals, among others. It some counties it can be a regulatory requirement to practice or needed as part of a contractual agreement
What does Professional Indemnity Insurance cover?
The coverage provided by a Professional Indemnity Insurance policy typically includes:
Legal defense costs
The insurer will pay for the cost of defending a claim made against the policyholder, including legal fees and court costs for unintentional acts of negligence like bad advice or mis representation
Settlements and judgments
If the policyholder is found to be liable for a claim, the insurer will pay for any settlements or judgments up to the limit of the policy.
Loss of documents or data
Professional Indemnity Insurance may also cover losses that occur as a result of the loss, theft, or damage to client data or documents.
Copyright infringement
Some Professional Indemnity Insurance policies can protect you if you have unintentionally violated someone’s copyright, whether in logos, designs, written words, etc.
Why buy Professional Indemnity Insurance?
Professional Indemnity Insurance is often required by regulatory bodies, professional associations, or clients before a professional can begin providing services.
The coverage and premiums will vary depending on the level of risk associated with the profession, the size of the business, and the specific services provided. Overall, Professional Indemnity Insurance is a critical form of protection for professionals who provide advice or services to clients.
How much does Professional Indemnity Insurance cost?
The cost of any Professional Indemnity Insurance depends on the profession that you are operating in and whether there is any mandatory requirement for coverage.
Usually, companies that have been in business for longer will probably pay less for Professional Indemnity Insurance. A company with a long history and no claims track record poses a lower risk of litigation and can expect to pay less than a new company with no track record or experience.
When should I consider Professional Indemnity Insurance?
If you are providing any type of professional service then Professional Indemnity Insurance should be considered from the start. If not, the driver could be purely down to a push factor such as your major client requiring it as part of the contract or a regulator asking for evidence of it as part of your licence application. In either case should you need impartial advice as to what to buy and when, please Contact Us
Why work with Continuum?
Our in-depth knowledge of both the industry and the appetite of insurers allows to advise clients on the appropriate solutions to help them protect their business and offer value to their clients. We take a client-centric approach, appreciating that insurance may be a future requirement rather than an immediate need and advise on the timing of policy inception as well as helping with payment schedules and budgeting requirements. Our aim is to advise and assist digital asset firms from seed to flower and become a long-partner with them through their journey to success.
Choose your industry to find the coverage that suits you
Web 3.0 & Emerging Technology
Crypto, Digital Assets & NFTs
Financial Institutions
EduTech and E-Learning
Fintech, Insurtech and DeFi
Tech Start Ups and Developers
Digital Health and MedTech
