Professional indemnity insurance often referred to as Professional Liability Insurance or PI Insurance covers legal costs and expenses incurred in your defence, as well as any costs that may be awarded, if you are alleged to have provided inadequate advice, services or designs that cause your client to lose money.
Professional Indemnity Insurance covers against a wide range of scenarios, including but not limited too:
- Professional negligence (i.e. making a mistake in a piece of work for a client)
- Loss of documents or data
- Unintentional breach of copyright and/or confidentiality laws
- Defamation and Libel
- Loss of goods or money (for which you are responsible)