Tech Professional Indemnity Insurance
What is Professional Indemnity and Errors & Omission Insurance (PI or E&O)
You have tried and tested processes in place, you have faith in your work and your execution and you have strong relationships with your customers… sound familiar?
However, despite your best intentions and desire to deliver, at times, one of your customers may decide that the work that you delivered failed to meet their expectations. At this point, even your most loyal customer may decide to make a claim against you.
A typical Professional Indemnity claim consists of defence costs and compensatory damages. Even if you feel that you are not at fault, it could cost you tens of thousands, if not hundreds of thousands to prove this in court. To most businesses in the UK, this could be catastrophic to the financial well being of your company.
Whilst lots of businesses understand what Professional Indemnity Insurance is there for, Many Managing Directors, Chief Finance Officers and Business Owners are not always sure.
One of the main misconceptions around Technology Professional Indemnity is that it covers you if you Injure someone or damage something belonging to somebody else. Whilst there may be elements to a PI claim that does relate to this, claims for Injury or Damage are usually picked up under a Public Liability Policy. The intention of a Professional Indemnity or Errors & Omission policy is to cover a financial loss to a third party (a customer whom you have contracted to undertake some work for)
So, no one is injured. Nothing Is damaged, but someone has to pay (usually financially) to fix what you said you’d do.