Insurance News

Professional indemnity claims are many and varied.

Professional Indemnity - What Can Go Wrong?

August 2016


As a professional it’s vital that you have adequate professional indemnity insurance in place – here are some *examples of things that can go wrong:

ERRORS

An advertising consultant added the wrong telephone number in an ad. This resulted in a reduction in sales, the resultant income and a poor image of the brand. The consultant's client claimed successfully for loss of income and damage to its brand. The costs of the claim were covered under the consultants’ professional indemnity insurance.

In the course of making a back-up of a client's hard disks, which was part of the service he was contracted to do, an IT consultant inadvertently overwrote all of the data on the client's hard drives. The data could not be retrieved. The client sued for damages.

A safety consultant was successfully sued for £75,000 damages after a man was injured when he fell from scaffolding approved by him.

DESIGN

As a result of inadequate design by an engineer, air extraction and temperature control equipment in a restaurant failed to work properly. The restaurant was closed pending repairs. The claim was settled at £150,000 plus costs under the engineer’s professional indemnity insurance.

Making sure you have the right professional indemnity insurance is important, As you can see with these examples, clients may make significant claims against you and without insurance in place you may find these difficult to meet.

Contact us for advice and help on getting the insurance cover you need for your profession.

These are only examples. The circumstances of each claim vary and are subject to the terms and conditions of the policy wording.