PI can protect you against a range of potentially costly risks such as:

• Breach of duty – a breach of duty is when you or your company fails to live up to the duty you have promised the client. Whether that’s by delivering below par advice or not providing a service that you’d agreed to.  In some cases, if a claim is brought against you, you could be left personally liable for the costs and damages.  Professional indemnity insurance protects you against these costs, providing great peace of mind for an affordable premium

• Loss of documents or data – this applies to losing documents and data or sharing data or sensitive information without prior consent. Whether you’re a solicitor, lawyer or a data controller – such as a digital marketing consultant – you could be held personally liable for losing documents or data and face hefty penalties.  In a digital world where threats from cyber-attacks are real and rising, this is something that’s well-worth protecting yourself against

• Civil liability – this specifically looks at the effects of the advice or instructions rather than assigning fault with the initial advice. You’ll need civil liability cover if your advice leads to injury or illness as opposed to financial loss.  If you complete consultancy work then this will be more relevant to you than, say, for a financial advisor or a lawyer
  
  
• Negligence – every professional has a duty of care to their client. This means they must act and deliver their services to a high standard, taking reasonable care to do so.  Due to the Supply of Goods Act 1982, there doesn’t need to be a breach of a specific contractual agreement for you to be liable for negligence.  As an independent body – such as a financial advisor – this would fall on you personally and could leave you with large legal costs and compensation claims to pay

• Contractual liability – if you sign a contract with another company and assume liability on behalf of them in your job role, contractual liability could be useful for you. This protects you if you’re held liable for failing to uphold the terms of a contract.  This could affect both service-based and advice-based businesses, and it could be key to protecting you
  
  
• Defamation – if you make false or defamatory statements about a person or organisation, you could be held liable for damages. It’s particularly useful for those in the journalism industry or anyone that regularly makes statements via a public platform such as social media, PR or online marketing