Professional Indemnity Insurance

Professional indemnity insurance will cover you in the event that you are sued by a client who claims that they have suffered a loss as a result of your professional negligence.

For instance an advertising consultant put the wrong telephone number in an add and they sued them for loss of income and damage to their brand, compensation awarded against them £25,000

Professional indemnity insurance is defined as:

1. Indemnity to a professional man or firm against legal liability to compensate a third party who has sustained injury, loss or damage through breach of duty.
   
   
2. Here are some more examples of professional indemnity insurance claims:
   
   
   • A management accountancy practice failed to alert their client to losses resulting from an employee falsifying sales returns. Compensation awarded against them £14,000
     
     
   • A translator made an error in a technical brochure, resulting in reprinting costs and damages for the client's loss of business. Compensation awarded against them £20,000
     
     
   • A graphic designer adapted a drawing from a text book for use as a logo, and was sued for breach of copyright. Compensation awarded against them £35,000