If a client suffers – or claims to suffer – financial or reputational damage as a result of your advice, your business could face legal action. Even if you’ve done nothing wrong, the cost of defending yourself can be eye-watering.
This is where professional indemnity insurance – or PI for short – comes in. If a client or former client makes a claim against your business PI picks up the bill. That includes legal costs and any compensation.
Sometimes known as professional liability insurance, don’t confuse PI with public liability insurance, which covers your business against accidents and injury to the public. PI is different, covering you for financial, sales or reputational damage that could result from your professional services.