PROFESSIONAL INDEMNITY INSURANCE: Protecting Your Professional Journey

What is Professional Indemnity insurance?

Professional indemnity (PI) insurance is a vital risk management tool for businesses and professionals. It provides financial protection against claims made by clients or third parties for alleged negligence, errors, or omissions in the services or advice provided.

If a client or third party suffers a financial loss due to your mistake and sues you (whether actual or alleged), PI insurance can cover:

Legal defense costs
Court awards
Settlements

We have also placed a number of construction project professional indemnity (known as SPPI or CPPI) – see below for details.

Who Needs Professional Indemnity insurance?

A wide range of professionals benefit from PI insurance. Here are some common examples:

Technology Professionals
IT consultants, software developers, and data security specialists all face risks like project delays, system failures, or data breaches. PI insurance protects them from client lawsuits over these issues.

Manufacturing Professionals
Manufacturers can be sued for product defects causing injury or property damage. PI insurance provides coverage for legal costs and potential settlements.

Architects & Engineers
Design flaws or structural failures can lead to expensive lawsuits. PI insurance for architects and engineers offers protection against such claims.

Investment Managers
Investment decisions can have significant consequences. PI insurance for investment managers protects them from claims of negligence or mismanagement of client funds.

Lawyers
Lawyers are exposed to the risk of malpractice lawsuits. PI insurance for lawyers helps cover legal defense costs if a client sues for errors or omissions in their legal representation.

Accountants
Accounting errors can lead to financial losses for clients. PI insurance for accountants provides protection against such claims.

Media Liability Insurance
Media professionals like publishers, broadcasters, and journalists face risks like defamation, copyright infringement, or invasion of privacy. Media liability insurance is a specialized form of PI insurance that protects them from these types of lawsuits.

Trustee Professional Indemnity
Trustees have a legal responsibility to manage trust assets prudently. PI insurance for trustees protects them from claims of breach of fiduciary duty.

Other Professionals
Many other professionals benefit from PI insurance, including real estate agents, consultants, and financial advisors.

This list is not exhaustive. Many other professionals, including accountants, lawyers, real estate agents, and consultants, can benefit from PI insurance.

Construction Project Professional Indemnity Insurance

What is Construction Project Professional Indemnity Insurance?

Also known as Specific Project Professional Indemnity (“SPPI”), Construction Project Professional Indemnity (“CPPI”) Insurance is a specialized form of coverage designed to protect professionals in the construction industry from claims arising out of errors, omissions, or negligence in the performance of their services. This insurance provides financial protection against the costs associated with defending against such claims and any resulting damages awarded.

Who Needs SPPI / CPPI?

Specific Project PI or Construction Project PI Insurance is essential for a wide range of professionals involved in the construction industry, including:

Architects: Protects against claims of design errors or omissions.
Engineers: Covers liabilities arising from engineering faults or mistakes.
Contractors: Shields against errors in construction management or supervision.
Project Managers: Safeguards against claims of inadequate project oversight or coordination.
Surveyors: Ensures protection against surveying errors that could lead to costly project delays or adjustments.

Coverages Provided

Professional Negligence: Covers claims arising from errors, omissions, or negligence in the provision of professional services.
Breach of Duty: Protection against claims of failing to perform duties to the required standard.
Civil Liability: Coverage for various civil liabilities, including misstatements, defamation, and breach of confidentiality.
Legal Defense Costs: Payment of legal costs incurred in defending against claims, even if the claims are groundless.
Loss of Documents: Covers the cost of replacing or restoring lost or damaged documents.
Joint Venture Liability: Protection for liabilities arising from joint ventures or partnerships with other firms.
Sub-Contractors and Consultants: Extends coverage to include liabilities arising from work done by sub-contractors or consultants.
Infringement of Intellectual Property Rights: Covers claims of infringement of intellectual property rights, such as copyrights or patents.

Benefits of Professional Indemnity Insurance

PI insurance offers several advantages:
- Peace of Mind: Knowing you have financial protection allows you to focus on delivering excellent service without worrying about costly legal battles.
- Enhanced Client Confidence: By having PI insurance, you demonstrate professionalism and commitment to client satisfaction.
- Risk Management: PI insurance helps manage financial risks associated with errors and omissions.
- Compliance & Contracts: Many industries and clients require professionals to have PI insurance as a condition for contracts or regulatory compliance, ensuring business continuity and growth opportunities.

Get a Quote Today!

Contact us to discuss your specific needs and obtain a personalized quote for professional indemnity insurance. Our team will help you choose the right coverage to protect your business and your reputation.

Taking Care Of All Your Risk Management Needs.

Started in the 1960s as an insurance agency, Tan Insurance Brokers is led by a team of extremely experienced and qualified risk managers and advisors and has partnered numerous local and global enterprises for over 4 decades.

At TIB, you always come first. We’ve built our reputation on decades of putting customers first and our experts are always on hand to deliver personalised service and support.