Professional indemnity insurance, often also referred to as PI insurance or professional liability insurance covers your legal expenses and costs incurred in your defense, as well as any other costs or damages that could be awarded, if you are alleged to have given any inadequate services, advice or designs that could lead to your client losing money.
How Do I Know When And If I Need Professional Indemnity Insurance?
In many professions, you will have to have professional indemnity insurance as part of the their respective industry body’s regulatory requirements. Even if you are not expected to have professional indemnity insurance, you should still consider it, as you could become liable for thousands of rands in legal fees and compensation payment, not to mention the loss of income from being off from work to defend any allegations. Below are some of the reasons you may want to have professional indemnity insurance:
- If you provide designs to your clients (such as working as a design engineer or architect)
- If you offer professional services or advice to clients (this includes contracting or consulting)
- If you would like to protect against any allegations of negligence or mistakes in work that you have undertaken for clients
- Your industry regulatory/association body may require you to have PI insurance
- If you work as a consultant, contractor, self-emplyed professional or a freelancer, and your client may have requested that you have professional indemnity insurance in order to undertake the contract
There are many different professions that may need you to have professional indemnity insurance; these are just some of them:
- IT professionals. This will include IT consultants, contractors, developers and programmers
- Business and management consultants. This includes training consultants, marketing consultants and education consultants
- Recruitment consultants and recruitment agencies
- Engineering and technical contractors. This includes project engineers, CAD designers and offshore gas and oil engineers
- Fitness professionals. This will include dance teachers, yoga instructors and personal trainers
- Including graphic designers, web designers and interior designers
- Tutors and teachers. This will include private tutors as well.
At Munro Flowers Vermaak Attorneys, we offer professional legal aid and services including professional indemnity insurance. Visit our website on www.mfv.co.za for more information.