What is professional indemnity insurance? Who needs professional indemnity insurance? What is a professional service?
Professional indemnity insurance should be considered by a small business where advice, professional, or technical services are offered to a client.
Many small businesses do not appreciate the need to purchase professional indemnity insurance, especially if there is not a legal requirement, or if offering services is only part of their business.
How much professional indemnity insurance you require, wiill depend if you operate within a regulated industry or need to hold specific limits to meet your contractual requirements.
Underinsurance remains common and when small businesses face disputes, they find themselves having to pay costly legal fees and large compensation claims to put their customer back into the same financial position.