All terms
Business Setup & Legalintermediate

Professional Indemnity Insurance

Definition

Insurance protecting service businesses and consultants against claims that your advice or work caused a client to suffer financial loss.

Why it matters

If you give professional advice, marketing, legal, financial, design, coaching, and a client claims it caused them harm, PI insurance covers legal costs and compensation claims.

Example

You design a client's website. They claim the SEO was poor and they lost £20,000 in revenue. Without PI insurance, you face legal fees and a potential £20k settlement. PI insurance covers both.

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