Professional indemnity insurance protects professionals from costs arising from mistakes made in their work. It covers liabilities from negligence, loss of documents or data, copyright or confidentiality breaches, and defamation. The cost of professional indemnity insurance depends on the amount of coverage needed, the business activities, and income generated. It does not cover fines, pollution-related losses, injuries to employees, or pre-existing conditions. Having this insurance allows professionals to offer services without needing to account for potential future costs from errors.

1. Professional indemnity
insurance
Student name :
Student number :
Lecturer :
Date :
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2. What is Professional Indemnity
Insurance?
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3. How important is professional indemnity
insurance in business?
 Having an insurance policy that covers a professional for their work is important
because it allows them to offer services without having to build in the potential
additional cost of any mistakes they might face in the future.
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4. What are the most common reasons for
PI?
 Professional Negligence
 Loss of documents or data
 Breach of copyright or confidentiality
 Defamation
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5. What does professional indemnity insurance
cover?
 Unintentional breach of copyright
 Defamation and libel
 Unintentional breach of confidentiality
 Loss of documents or data
 Loss of money or goods that you are responsible for
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6. What doesn’t professional indemnity insurance
cover?
 Fines and penalties
 Any loss to your business that’s caused by mould, pollution or asbestos
 Injury to an employee
 Injury or loss in a joint venture (only your products/services would be covered by
your insurance, and not the products or services of a partner)
 Circumstances that existed prior to when your cover started.
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7. How much does professional indemnity
insurance cost?
 the amount of cover you require
 the activities you are undertaking
 the income your business generates.
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8. Thank you.
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