Why Do I Need Indemnity Insurance

28/11/2013 -- Admin
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Professional indemnity insurance is used by professionals to defend against the significant costs of compensation claims should their advice, error or omission cost your client financially or in terms of reputation.

Good indemnity cover should cover the cost of compensation and contribute towards legal costs and fees you may be liable for.

Even if it you or your company haven't been negligent in any way, the cost of defending a court action against you by a dissatisfied client could be crippling, and result in your business going bankrupt.

Spurious, Malpractice Negligence Claims

Professional liability insurance should pay all reasonable costs incurred in the defense (i.e. legal fees) or settlement of such claims arising from any of the common issues arising.

Professional indemnity is cover, therefore, not only for spurious claims but more importantly, for meeting the cost of defending allegations of malpractice or negligence in court.

Legal Costs

Investing in professional liability insurance cover means that your legal costs should be met, but should a claim be proven, also the cost of meeting any compensation payments, up to an agreed limit.


Most professional occupations such as accountants, architects, computer consultants, engineers, IFA's, medical professionals, doctors & nurses will recognise the value in having adequate PII cover as it provides piece of mind over occupational risks. In some professions PI is mandatory, in others a requirement imposed by governing bodies.