What is Professional Indemnity?
In short, professional indemnity refers to compensating a client for a loss that results from negligent advice or expertise provided by a professional or company. When a business enters a contract with a client it is expected to deliver advice and service that is up to standard. But if negligence, a mistake, or an error results in harm or financial loss to a client, the business can be held professionally liable and forced to pay damages.
What is professional indemnity insurance?
Professional indemnity insurance (also called PI insurance or PII) protects a business from legal claims by customers who allege they have been harmed or lost money as a result of professional design, advice, or service that was provided. This could be from a mistake, negligence, or other failures of professio...