Professional indemnity insurance, or PI as it’s often known, can help to protect your business if claims are brought against you by a client who is unhappy with the work you’ve done for them. If you’ve made a mistake in your work that needs to be corrected or have been negligent, then indemnity insurance can cover for compensation that may have to be paid. This is a key way to ensure that you’re dealing with people who understand professional indemnity insurance as a product and the professions for which they’re providing cover. Of course, you may not need to phone or email them. When it comes to how much you should be paying for your professional indemnity insurance, there are two things to consider. The amount of cover you need.
Professional indemnity insurance works in a number of ways. It will cover you if you make a mistake in the professional services you have provided should this lead to a dispute with a client. This can have disastrous consequences for a small company or business and a as result it is worth considering the protection offered by professional indemnity insurance cover. Professional Indemnity Insurance (PI) is typically obtained by business professionals who provide advice to their customers. There are two categories of businesses that purchase PI: voluntary and involuntary.
A thorough review of any Professional Indemnity insurance policy wording is essential. If in doubt, professional advice should be sought. Professional indemnity insurance is designed to cover the costs of any compensation claimed by a client of your business. If a client claims against your business, then the indemnity insurance will cover the compensation as well as legal costs. Our governing body, the Nursing and Midwifery Council, requires us to inform all potential clients that we do not have professional indemnity insurance and the implications of this. We expect Independent Midwives to always be conscientious, professional and responsible practitioners.