Insurance for business

Professional Indemnity Insurance

Professional Indemnity Insurance (PI insurance) is liability insurance that covers your legal liabilities in the event of a third party taking legal action against you, claiming to have suffered a loss as a result of advice that you have given in a professional capacity.

Ready to start your experience with us? Contact us

Why Choose Us ?

In House Scheme

In house Professional Indemnity scheme underwritten by Lloyds of London.

Getting You The Best Deal

Access to the whole PI Market via numerous channels to get you the best deal.

Extensive Knowledge

Over 45 years’ experience of the PI Market

Duty Of Care

Professional indemnity insurance is compulsory for some professional trades and services. These tend to be the more traditional professions such as independent financial advisers, solicitors, insurance brokers, accountant and architects.

However, the increased use of external consultants and outsourcing other services means that more businesses should consider their risks.

Duty Of Care

Professional indemnity insurance is compulsory for some professional trades and services. These tend to be the more traditional professions such as independent financial advisers, solicitors, insurance brokers, accountant and architects.

However, the increased use of external consultants and outsourcing other services means that more businesses should consider their risks.

Managing Your Duty Of  Care

A ‘Professional’ is now regarded as any person who offers specialist advice or services. As a professional, you owe a legal ‘duty of care’ to your clients. If you breach that duty of care by making a mistake in the services you provide, your client can claim compensation from you for losses and expenses caused by your negligence.

Today’s commercial environment is becoming increasingly litigious with clients seeking compensation far more frequently than in the past. Even if the allegation made against you is false, the legal costs involved in defending the claim can be very high.

Without a valid Professional Indemnity insurance policy, you will be left to defend the allegations and will have to instruct a lawyer and pay for the subsequent legal costs involved. In the majority of cases the claim will settle before going to court, but even in very minor disputes the legal costs can build up very rapidly.

Professional indemnity insurance cover to consider

Full Civil Liability cover or just Errors and Omissions Cover?

A ‘civil liability‘ wording is the widest available form of cover and wider than the usual ‘negligence’ or ‘errors and omissions‘ wordings. This wording will cover situations where you may be held liable for a loss, without having being found to be negligent.

Some basic PI policies are what we call “Negligence Only”, in other words, the insurance company will indemnify you against claims for Professional Negligence Only.

A Negligence only policy is what is known legally as a strict liability policy and will indemnify you against losses laid out in the policy wording, but in the main, the claimant will need to prove the following three points:

  • You owe a duty of care to the claimant (usually your client)
  • You’ve breached your duty of care
  • The said breach has caused loss to the claimant

In contrast a full civil liability provides cover for all claims made against you which are not explicitly excluded.

Also, a full civil liability policy will often extend the cover to include:

  • Defamation (libel and slander)
  • Loss of documents or data (privacy)
  • copyright infringement or intellectual property disputes

Limit of Indemnity Chosen.

This will depend on your profession, your contractual position and your own assessment of the risk that you perceive to your business. Limits available tend to range from £ 100,000 up to £ 50,000,000 or even greater. It’s important to think about potential claims and to take in to account how quickly solicitor’s fees can mount up when a solicitor is appointed to protect your position and defend you.

Retroactive Cover

It is important to understand that professional indemnity policies are written on what is called a ‘claims made’ basis. This means that they provide cover for claims made against you during the policy period (i.e. after the inception or renewal date) that relate to work that you have done at any time after the retroactive date. You must therefore ensure that the retroactive date mirrors the date from your current policy or else you will not have cover for your past work.

Any one Claim or Aggregate Cover?

In real terms if you look at your indemnity limit as a Pot of Money for any particular period of insurance then the following illustrates the difference between the cover offered:

Any One Claim- Limit of Indemnity £ 5,000,000

If you had a claim during the policy period of say £ 2,000,000 and then had another claim of

£ 3,500,000 then both claims one be dealt with in full as the cover is £ 5,000,000 Indemnity for each claim.

Any One Claim and In total basis (Aggregate) Limit of Indemnity £ 5,000,000

If you had a claim during the policy period of say £ 2,000,000 and then had another claim £ 3,500,000 then the first claim would be paid in full but the second claim would only be partially dealt with as there is not enough money left in the pot following the first claim ( There is only £ 3,000,000 left as the cover is in the aggregate during the policy period).

To discuss any aspect of your insurance requirements with us, please contact us and one of our dedicated Account Executives will be in touch to assist you further.

A Management Consultant was advising a company with restructuring. He indicated the work would save the client £50,000 p.a. But the company actually lost money and sued, saying he’d miscalculated. He had PI cover and was able to leave solicitors to defend himself. This led to a settlement of £15k to client plus £10k in solicitors’ costs.

Get Started with your cover

All you need to do is get in touch and we will get back to you shortly

Latest News

Our Location

The Grove, Mill Lane,
Wheelock, Sandbach,
Cheshire, CW11 4RD.
Telephone: +44 (0)1270 758070
Fax: +44 (0)1270 758059

R.K. Henshall © 2021

R K Henshall & Co Ltd are Independent Intermediaries and are authorised and regulated by the Financial Conduct Authority. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, T.R.Dredge DIP CII, A.Brown FCCA. Director/Company Secretary R.K. Henshall ACII. Registered No. 1285024

R K Henshall are very proud to support Lupus UK. Lupus UK is a charity very close to our hearts. Unfortunately, Nita Davies who had been a stalwart of our company from it’s very beginning lost her battle against this terrible illness in 2013. Lupus UK is the only National Charity which supports people with the immune system illness. (Registered charity nos. 1051610, SC039682) Click here to read more about Lupus UK.