If you are in the business of providing professional services, advice and products there are many good business reasons for having a professional indemnity (PI) insurance policy in place. One important reason is for the image it sends out to potential and current clients. Perception is pivotal in today’s business world, and it only takes a few pointers to form an impression. Having PI insurance gives your clients and prospects confidence that you will be able to compensate them should things go wrong, and gives you a solid, professional image. Many professional bodies, including solicitors, accountants and financial advisors must have PI insurance cover in place in order to practice. If you are not sure if this applies to your area, contact your own professional body. If your profession does not require you have this, there are still many other benefits.

Even with the best possible skills and working practices, there is a risk that something may go wrong due to an error or mistake being made, or by simply giving the wrong advice to your clients. If this happens and the client suffers ‘business damage’ and financial loss as a result, they may make a claim against you to recover these lost funds. The purpose of PI insurance is to provide your business with financial support to cover the cost of any claims like these and any legal costs incurred in responding to the claim. Without PI insurance, all costs will have to be met from the assets of the business, which may potentially put considerable strain on cash-flow and savings. It makes good business sense to have PI insurance in place; whether you are a personal trainer with personal trainer insurance or a consultant with consultants insurance, it gives both you and your clients confidence that if something does go wrong, your business will be in a position to resolve the issue as quickly and expertly as possible.