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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