If you are a medical professional then no matter how good you do your job, you could find yourself in a bit of a pickle and a legal claim against you. 

Unfortunately, we live in a world where this sort of behavior is extremely common. People will use legal means whether they deem it appropriate or inappropriate in order to seek financial compensation. 

You may not see this coming and the costs of representing yourself could be really high. So indemnity insurance may be something worth considering. 

Here are some of the reasons why.

Why You Need Indemnity Insurance

1. Professional Liability Cover

In your aim to do a professional job and offer a high-quality service, the facts remain that sometimes things can still go wrong.  This could be related specifically to things like surgery. 

The unfortunate outcome of this could be pain or even death for an individual. Therefore, the consequences are as significant as it gets. 

Having someone cover you, you can rest assured that if there is a professional claim looming then you will have the best in the business looking after this on your behalf and looking to defend you. 

The price of these sort of covers are not high and could become invaluable if a large claim is set against you.

2. Libel Claims

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The reputation of you and your company is extremely important if you want to maintain your current customers but also attract new work.

Sometimes this can be affected on a justified basis. However, on other occasions, you may have a situation where people have told untruths and you could have the case to receive libel damages. 

If you can prove that work has been lost due to the poor representation or reputation on incorrect information then you should definitely be entitled to compensation for this.

3. Cyber Cover

Another sad fact about today’s modern world is that we rely a lot on information technology to store data and conduct our day to day basis – this is sometimes compromised. 

It is extremely important that you do as much as you can to protect people’s information, especially in the medical industry as this is private. 

The indemnity insurance covers that you can take out may, therefore, cover you for claims resulting in a cyber attack or event. 

This again is extremely costly and the insurance cover can sometimes cover up to £1 million.

4. Human Resource Inquiries

Internally you may require to use the internal processes you have around you to take disciplinary action – this can sometimes leave you in a bit of a legal entanglement. 

In these cases, the costs could also be extremely high which doesn’t just include compensation costs but the money up front to ensure you have the correct legal representation in order to support your case. 

In addition to this, HMRC may wish to take a visit to your company and investigate your tax liabilities. 

Dealing with HMRC can be a tedious task and if you do not have all the correct paperwork, justification and payments made it can leave you not only with fines but potential prosecution. 

5. Cover Costs

Ultimately, one of the main themes in all of the above is that paying indemnity insurance upfront will support your costs. 

Whatever legal challenge you end up having, the initial costs to support this could be really high. So if you do not have indemnity insurance you may struggle to represent yourself properly.

In fact, it could end up costing you a lot more money in the long run if you then lose the legal case.

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.


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.