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What Is Professional Indemnity Insurance?

Submitted by: Michiel Van Kets

Business insurance is to protect the business against any risks associated with their business practices. This may include risks of personal injury to customers or employees, fire, flood, theft, natural disasters, malfunctioning computers, construction accidents, financial losses and other damages if the business was not acting negligently. There are many different types of business insurance and each business can customize their coverage. The cost will depend on what kind and how much coverage is required. Consultancies in the UK, that offer advice to clients, especially need Professional Indemnity Insurance to cover the risk that the advice may cause a client financial or other type of loss.

Professional Indemnity Insurance will cover any claim made against your company. Without this insurance, the claim could be large enough to ruin your company. Management consultants, IT consultants and design consultants are examples of consultancies that would need protection.

Management consultants assess the effectiveness of a management team in an organisation or company. They help the client maximise the team’s abilities and skills and suggest other abilities and skills that would make the team work even better. A management consultant may also identify leaders among the management team. Their aim is to help the company use it’s existing resources and to identify additional resources that may help the company run more efficiently.


It may not be possible 100 percent of the time to make the correct judgment about personnel. If such a situation arises and the company suffers losses because of a decision of a management consultant, they could demand retribution. Personal Indemnity Insurance will cover this.

An IT consultant manages the information and computer technology for a business. There are many different types of IT consultants. Most businesses need IT professionals and either employ someone or hire a consultant. The business data for any business needs to be easily accessible at all times through automation techniques. There is enterprise business architectural support, hardware engineers and software management support to name a few of the areas covered.

If a business computer networks stop functioning properly and, because of this, business is lost, the IT consultant could be responsible. Professional Indemnity Insurance will protect the consultant against any costs they need to pay for the failure and loss.

Design consultants give advice for remodelling or renovation projects. They prepare detailed plans for construction and must estimate the costs of the project. They may also be responsible to select other contract services for the project. Professional Indemnity Insurance will protect them if there is any error or accident involved in the plan or construction.

There are other types of insurance a business in the UK should have. Construction companies may want tool insurance and heavy equipment insurance. Also, Public Liability Insurance may be a legal requirement to protect your business or employees against any claims made if a person is injured or property damaged in the course of your normal business practices.

Insurance companies will help any business choose the best combination of coverage for the type of operations involved.

About the Author: Michiel Van Kets writes articles for Caravan Insurance Experts,

providing Cheap Classic Car Insurance and Professional Indemnity Insurance.


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