If your business offers information or expertise, such as advice, design, specifications, and the like, you have a responsibility and duty of care to your client, and third parties, through the services and expertise you provide.
In many professions, individuals are required to have PI insurance cover as part of their professional authorisation. This includes accountants, solicitors, architects, IT consultants, real estate agents, and financial advisers.
If a professional fails to exercise reasonable skill and care in the service they provide, they may be liable for losses incurred by their client, and/or third parties.
Professional Indemnity insurance is designed to protect professionals and their businesses in the event of claims made by a client or third party suggesting that they have suffered loss through the services provided. In addition, Professional indemnity insurance covers legal and other costs and expenses incurred in the defence of any claim.