Professional Indemnity Insurance (PI insurance) is insurance that covers your legal liabilities in the event of a third party taking legal action against you, claiming to have suffered a loss as a result of advice that you have given in a professional capacity.
Professional Indemnity Insurance is compulsory for some professional trades and services. These tend to be the more traditional professions such as independent financial advisers, solicitors, insurance brokers, accountant and architects.
However the increased use of external consultants and outsourcing other services means that more businesses should consider their risks.
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