Whenever you employ the services of an accountant, insurance broker, financial advisor or similar professional, it is always advisable to check not only the professional’s accreditation but also their capacity to cope with a professional negligence claim .
Professional Indemnity Insurance
Professional Indemnity Insurance (PII) is a form of insurance cover taken out by professionals to help them protect their business in the event they have to defend a client’s professional negligence claim. If a firm or practitioner has adequate PII clients who have suffered losses as a result of negligent advice are more likely to receive financial redress.
Most professionals are required, whether by legislation or regulatory enforcement, to take out some form of PII. Professionals with PII include:
- Solicitors, lawyer and barristers
- Financial planners
- Insurance brokers
- Construction companies
Without PII, many professionals would risk financial ruin in the event of being forced to defend professional negligence litigation.
However, rate and scope of cover will vary depending upon a number of factors, including the business’s size and previous claims history.
What does PII cover?
The extent of PII cover will depend on the specific policy. However, most policies will allow for compensation to be paid in the event of loss, damage or personal injury. PII insurance will also cover legal costs such as lawyers’ fees.
Checking a business’s PII status
PII cover is a legal necessity for many professionals but it is still worth checking a professional’s PII status before engaging its services – it could be one of the smartest moves you ever make.
Healys professional negligence solicitors
When you put your faith, trust and hard-earned cash into the hands of a banker, accountant or financial advisor, you trust them to give you the most suitable advice and products for your needs and requirements. If the practitioner, or firm, fails to act in a way which another, suitably qualified professional would have acted, then you may be able to make a claim for compensation.
If you have suffered financial loss as a result of negligent services from a professional, the solicitors at HealysLLP’s Brighton and London offices may be able to help you make a successful professional negligence claim .
For advice and assistance you can trust call our London office on020 7822 4106or send us an email.