A concert hall’s acoustics were so bad that anyone sitting at the back of the hall couldn’t hear what was happening on the stage. As a result, the company responsible for designing the acoustics was sued for negligence and the claim was settled for £35,000.
A marketing agency printed some brochures for a client. Unfortunately, the printed document had the client’s wrong contact details. The reprinting costs of over £12,000 were met by the agency’s professional indemnity insurance.
Even with extensive staff training, the way employees carry out their work activities is ultimately beyond a company’s control, leaving it exposed to liability claims. Professional indemnity insurance gives peace of mind in the event of an employee’s negligence.
In today’s increasingly litigious world, people expect high standards of service and are more inclined to resort to legal action when they believe there’s been a lack of duty of care. Professional indemnity insurance provides protection against such claims.
Professional indemnity cover will provide protection against an accidental lapse in judgement resulting in a defamation or libel claim. For example, an employee sharing information on social media about a client which could be perceived as negative or slanderous.