Professional Indemnity Insurance

If your business provides advice or consultancy services then the business has a responsibility to clients. Incorrect advice leading to a quantifiable loss by your client could easily result in a claim against you. This will not only have serious financial implications but could easily tarnish the reputation of both your Company and yourself.

Professional indemnity insurance will provide insurance for businesses in the event that legal action is taken against them by third parties claiming to have suffered a loss as a result of advice given to them. The definition of professional indemnity insurance is providing financial indemnity to a professional man or firm against a legal liability to compensate a third party who has sustained injury, loss or damage through breach of duty.

Professional Indemnity Insurance includes:

• Breach of professional duty.
• Breach of copyright.
• Breach of confidentiality.
• Libel and slander.
• Loss of documents.

Examples of how a claim could arise

• An advertising consultant inserted the wrong telephone number in an advertisement. The result was a reduction in the number of sales achieved, the resultant income and the brand. The company which paid for the service, decided to claim for loss of income and damage to their brand. They were awarded £25,000.
• A management accountancy practice failed to alert their client to losses resulting from an employee falsifying sales returns. Compensation awarded against them was £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 was £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 him was £35,000.

For further information or a quotation call Quadris Insurance Brokers on:
0208 144 1271 or email us insure@quadrisinsurance.co.uk