Indemnity Insurance

Why is professional indemnity insurance important?

Any person offering advice and/or services over which he has a skill or mastery according to established principles or disciplines is called a professional. The law in the United Kingdom makes it mandatory that any professional exercises his or her skill at an appropriate level that is expected of his or her profession. The professional is entitled to demand a price against the skill or expertise he is offering.

However, it cannot be denied that professionals are human and we are all acquainted with the popular phrase ‘to err is human’. In other words, we must understand that errors might occur no matter how expert the professional is and sometimes these unintentional errors might lead to financial loss. Any professional may also be held to be liable for a mistake even though there was no negligence. Professional indemnity insurance takes care of such undesirable situations. In other words, professional indemnity insurance will protect professionals in case their failure to deliver agreed tasks lead to legal cases filed by the company/organization to which the professional has been offering his expertise.

Today, indemnity insurance is compulsory for most professional businesses and services across the United Kingdom. The law in the United Kingdom makes it mandatory for traditional professionals such as architects, engineers, solicitors, financial consultants, accountants, and other miscellaneous classes to be covered by professional indemnity insurance so that any claims against error, omissions, professional neglect for both the principles and their employees are taken care of without much price having to be paid.