There exist several insurances available exclusively for professionals or which are meant for them – Car insurance for professionals, health insurance for professionals, and disability insurance for professionals and so on. However, one of the most important insurance for professionals is the PI insurance (professional indemnity or professional liability insurance).

Why does a professional need PI insurance?

Every professional, irrespective of his or her field of expertise and service owes a duty of ‘skilled work and service’ to his or her client and the third parties involved. This duty is more often mentioned in the clause of a contract as a duty of ‘reasonable skill and care’. In case of failure in providing ‘reasonable skill and care’ in service (as per clients discretion) the client can sue the professional for ‘breach of duty either due to error/omission or negligence. In such a situation, the professional is left with no option but to either defend or accept the charges. Both the ways out, costs the professional a good sum and even in case of out-of-the-court settlement the client is no-way going to let the professional for free!

In such tough times, PI insurance protects the professional by facilitating the finances required for the legal rigmarole, the loss incurred to the client’s properties/services and other related expenses. The financial cover is dependent on the PI insurance purchased by the professional. However, there exists an upper limit for PI insurance up to which, the insurance delivers money.

PI insurance is basically meant for the professional and not for the client. Yes, indeed the client has a right to insurance cover purchased by him or her, but for it to avail he or she needs to prove the guiltiness of the professional. On the other hand, a professional can avail the cover of PI insurance irrespective of his/her guiltiness. Thus, PI insurance is a cover meant for professionals and should be purchased by every professional to be on the safer side.

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For further information on indemnity insurance and professional liability insurance, please contact Coulson Pritchard Associates on 01480 470220 or visit at