Professional Indemnity Insurance: How Important Is It to My Business?

Professional Indemnity Insurance: How Important Is It to My Business?

Professional indemnity insurance (or PII), is a form of insurance that covers negligence and errors.

PPI includes a wide range of areas, such as data loss, confidentiality breaches, or incorrect information. This means it should be considered by any professional or business offering advice or design.

But why is it important for your business?

Here, we take a look at different industries, to show you how PII can benefit your business.

How Professional indemnity insurance Can Benefit Your Business


The hospitality sector can cover many areas, from food and drink, to sales and marketing, as well as spa and leisure. If your business provides goods or services in hospitality, you may not require PII. However, if your company operates as a consultancy, delivering advice to those within the industry, PII is a must.

For example, if your business advises on strategies or development opportunities which prove to be unsuccessful, the client may bring a claim for loss of earnings. In this instance, PII will assist your business by covering legal costs.


Whether your firm offers architectural, interior design, surveyor or planning services, PII is essential. As these types of business offer consultancy within the construction industry, ideas, designs and advice must be protected.

Construction projects can be long and costly, meaning there can be a lot at stake. Any claim made could cost a business thousands of pounds, with the potential to lead to collapse. Should the worst happen, PII can help to ensure business longevity by paying any monies owed.


Just like hospitality, retail covers a lot of ground. This includes operating an e-commerce site, working as a sales assistant, merchandiser, manager, buyer, or a position in head office. However, it also covers more specialised professions, including clothes designers, fashion consultants and independent contractors.

If your business operates in any of the last three capacities, you should consider PII. Whether offering advice or design, your employees, work and business should be covered.


Regardless of industry, mistakes can be made. However, when the purpose of your business is to advise, errors can be costly. As such, the aim of PII is to protect your venture, particularly from financial losses that can occur from a successful claim.

Furthermore, while PII is not a legal requirement, it can help to build trust. This could promote growth, bring in new clients and allow your business to reach new heights.

If you’re unsure whether your business could benefit from PII, speak to experts like Arthur J. Gallagher, who can assist.

Get The Lifestyle Designer's Digest

Sharing my adventures in lifestyle design, building an online business, and growing this blog. Join me for weekly updates.

Previous ArticleNext Article