Frequently Asked Questions

PI insurance protects the Insured’s business from financially crippling and often reputation-damaging claims by dissatisfied clients. Even the most respectable companies can find themselves in dispute with a client over a mistake.

The professional person must exercise whatever degree of care and skill is reasonably expected of any competent practitioner in that profession at that time. If a person provides advice or a service to another and carries that work out negligently, they can be held legally liable for the consequences. Normally, such advice or services are provided under the terms of a contract. Liability can arise because there has been a breach of duty of care or a breach of contract (the latter normally only covered by a PI policy where there has also been a breach of duty of care). Other than in breach of contract, for legal liability to be established, the professional must be shown to be in breach of his duty of care - but there is an alarming move towards liability just because things have gone wrong.

No two businesses are the same and there is no single amount of cover that suits all. Nobody knows your business and the exposure it faces better than the Insured. Our advice would always be to buy as much cover as you can reasonably afford. The Insured may require a minimum limit of the indemnity either set by a specific contract or their governing body.