Confusion around the role that you are undertaking can lead to a claim being made.
An Accountancy firm was hired to act for the purchaser of a business.
The purchaser believed that the firm was going to assess the commercial viability of an organisation. The firm however, thought that their role was limited to that of preparing cash flow forecasts based on given information for the purpose of raising finance.
A Professional Indemnity claim was raised and settled at £250,000. Without a PI policy in place, the firm would have been responsible for covering this cost themselves. An expensive misunderstanding was avoided.