Despite your best efforts, mistakes can happen. In business a single slip-up can lead to costly legal fees and a compensation payment if a client or someone else suffers a financial loss. Professional indemnity insurance (PI insurance for short) protects your business from claims arising from poor advice or making a mistake. In case you do something wrong in your work, it's the right cover to have.
Why your business may need PI insurance
Your business may require professional indemnity insurance if:
It gives advice to clients
It provides a professional service
It handles confidential information
It uses copyrighted material or intellectual property belonging to others
You belong to a professional body where PI insurance is compulsory
A client insists your business has it before they offer you work
Paying to correct a mistake you've made or defending yourself when the quality of your work is questioned could put your business out of business.
If a claim for negligence is made against your business, professional indemnity insurance can cover the cost of your legal defence and any compensation you need to pay to put things right, up to the cover level you choose.