Professional indemnity insurance northern ireland

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What is professional indemnity insurance?

Professional indemnity (PI) insurance provides protection in terms of legal costs and compensation payments should a client take legal action against you. As a professional, you are hired to give professional service if your service is not up to scratch, the client has a legal address and can claim compensation for the poor advice or services provided.

Professional indemnity insurance is also known as simply PI insurance or professional liability insurance.

Some typical examples of how a  business could become liable include for financial losses incurred by a client resulting from professional negligence include :  

  • Incorrect Advice
  • A service that is below expected standard
  • Faulty design

What is covered by professional indemnity insurance?

Each PI will have variations, but expect the following to be included in most PI polices 

  • Negligence: When the professional service is below the expected industry standard.
  • Data Leakage : When client data is shared or breached whilst in your control
  • Defamation : If you make a statement that casts the client in a way that will possibly lose them future business
  • Loss of Documents :  Loss of sensitive documents belonging to the client
  • Errors and omissions : When a mistake is made by the professional, which incurs additional costs to rectify 

What is not covered by indemnity insurance?

  • Public Liability: Cover is not provided for claims against injury or damage to property caused by your business, for this you will need public liability insurance
  • Employer liability : This is a legal requirement for any business with employees
  • Costs to reputational damage : If the clients hires a PR company to rectify any damages to their reputation, these costs may NOT be covered by a professional indemnity policy. 

Is it mandatory to have professional indemnity insurance?

This type of insurance is compulsory for some professions under the regulations of that profession. For example, it is a legal requirement for solicitors and financial advisers, architects and accountants. In Northern Ireland, it is also a legal requirement for NI pharmacists. In addition, having professional indemnity may be a requirement for engaging in outside client contracts, in particular governmental contacts. 

Pharmacist indemnity insurance NI

For pharmacists in NI it is a legal requirement to have the appropriate professional indemnity cover as a condition of registration. 

The Pharmacy (1976 Order) (Amendment) Order (Northern Ireland) 2013 came into operation on 7 November 2013.

Do I need professional indemnity insurance?

Even if it is not a requirement of your profession or business, you may consider it an important insurance to have. If you are in a business that give advice to clients or handles client data, this will provide against any perceived or actual negligence.

This is particular true for software engineers, tutors and designers

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