Professional Indemnity Insurance, also known as PI or Professional Liability Insurance, is insurance that protects an individual from being sued for losses incurred by a previous client due to services that he or she offered.
In other words, should you be charged by another party of negligence or misconduct, and your presence is requested at court, PI Insurance foots the bill for legal fees, client recompense, and any other expenses incurred during a protracted legal battle.
Who needs PI Insurance?
Anyone that offers a specialist service such as consulting, writing, design, or programming, should consider PI Insurance. Contractors, self-employed freelancers, and small business owners should all understand the benefits of this very useful type of insurance policy.
How necessary is it really?
This will depend on your business, but in our eyes, PI Insurance is one of the most essential types of insurance a company or individual can have.
We all know how easy it is to be sued in today’s world. Whether the damages are imagined or real, the likelihood of needing a lawyer is more important now than ever before. PI Insurance actually pays for a specialist solicitor in the event that you’re sued by a previous client. Not only that, but you’re also protected from paying the client out of pocket if you lose in court.
Above all else, your business doesn’t need to come to a halt during court hearings. You can run your business as usual while the solicitor handles your case.
How much PI Insurance is enough?
Again, the answer to that is: it depends. First, consider the services you offer clients. Are these services risky in any way? Why would a previous client sue me, and if I were sued, how much could I be held liable for? You’ll want to make sure you’re covered for the absolute worst. You’ll also want to add in the cost of your legal fees in court.
PI Insurance is often quite complex, especially when it comes to identifying how much one should pay for it. If you have questions about PI Insurance, or would like to consider purchasing PI Insurance yourself, then don’t hesitate to contact the UAE Money Expert. One of our specialists will be happy to assist you with any questions or concerns you have about this essential form of insurance.
To request an indicative quotation on PI Insurance products or for more information please complete the form below and a Qualified Regulated Expert will contact you.