PI Insurance

PI Insurance

Pi Insurance Market – Growing But Road Blocks are Still There

Professional indemnity insurance market is gaining boost from the ongoing credit crunch and global economic slow down. These two factors have forced companies for cost reduction measures and to become more quality conscious. The growing consciousness for quality is fanning the growth of Indemnity claims. There was a 5% declination in professional indemnity market in 2006 in comparison to 2005. But, 2007 witnessed a good start and the growth trend is prevailing in 2008.

The UK professional indemnity insurance market is going through a phase of product diversification. More and more professions are now added to be covered under these policies. Earlier, the major beneficiaries were accountants, architects and lawyers. Now, IT professionals, designers, photographers, artists and teachers are also buying these policies.

To minimize their risks, more professionals and companies involved in providing advice, design or a service to clients are opting for professional indemnity insurance(PII) policies. The professional indemnity insurance falls in the lines of liability insurance and protects the insured for his omission, error, breach of contract, unintentional infringement of intellectual property right or any sort of mistake that has potential to cause financial and/or image damage of the client. These policies are equally beneficial if the data offered by the client is lost or an employee of the service provider is found guilty in the misappropriation of the client’s money.

However, there are still some loopholes which keep a large number of professionals out of the PII orbit. These insurance policies do not protect the companies on their offshore projects. Environmental damages and pollution claims are also not included in the coverage area of PII. The short term protection tenure of PII (as they are not meant for whole life) is also creating confusion in the minds of the professionals. Insurers and the apex body Financial Services Authority (FSA) need to take steps in resolving these shortcomings to make professional indemnity insurance policies more customer-centric.

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For further information on professional indemnity and professional liability insurance, please contact Coulson Pritchard Associates directly on 01480 470220 or visit at www.professionalindemnityinsurance.co.uk

Professional Indemnity Insurance



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