What does Professional Indemnity protect me from?

Professional indemnity insurance protects you from claims made by clients because of alleged MISTAKES by YOU or your employees. It may cover the costs of fixing a mistake, so avoiding a larger claim and it can also protect you if a dissatisfied client refuses to pay the fee for your contract because of some alleged failure or mistake on your part. But its worth thinking of the BIGGER picture Your own CLIENT CONTRACT might be worth a few thousand pounds, but YOUR CONTRIBUTION could form part of a MUCH BIGGER project – perhaps worth millions to your client. Imagine yourself as a small cog in a larger machine.if your MISTAKE affects the project as a WHOLE, you could be liable for more than just your fees alone. Unexpected claims costs can CRIPPLE a business, and even if the allegations are UNTRUE, you STILL have to DEFEND yourself, and this can be expensive not just in a financial sense but for your time and sanity too. If your clients are multinationals which have large legal teams you could find yourself out-gunned in the event of a claim against you. Professional indemnity will cover your legal costs, and provide you with expert legal help to guide you through complicated issues, enabling you to meet your clients action on an equal footing and defend yourself effectively in the event of a claim going to court. This kind of expert service can be invaluable enabling YOU to focus on doing what you do best running your business.