Top 5 Reasons to Get Professional Indemnity Insurance


If you are a professional how do you protect yourself legally? What if you get into legal trouble and don’t have money to hire lawyers? This is why you need indemnity insurance as it covers any legal fees and defense costs. In this article, we break down the most important reasons that you would need to get indemnity insurance.

Let’s dive in.

1. Breach of confidentiality

Let’s say that you made a mistake and disclosed some confidential information that you weren’t supposed to. The client could take legal action against you. This is where professional indemnity insurance would come in. If you had a policy it would cover any legal costs in case of a breach of confidentiality.

2. Court attendance costs

If you are taken to court by a client you need to show up and miss work. Costs can be really crippling for business and could really affect operations, especially if you are right in the middle of a big project with a fast-approaching deadline. This would also be covered by indemnity insurance, so your business doesn’t have to suffer and you can continue prospering.

3. Defending your name

Sometimes you might need to defend your business from a defamation case. This is where someone in the community is spreading rumors about your business or has said something publicly that is not true and can damage your reputation. The court fees, in this case, could quickly pile up and this is why you would need a good indemnity insurance policy.

4. Employee fraud

Employees are the most valuable asset of any business but unfortunately, not everyone is honest and dependable. Sometimes you might come across an employee that is dishonest and you have to take them to court for fraud. This could be costly not only because you would need to hire a lawyer but also because of the large amount of time that you would be required to be at the court proceedings. This is another perfect time to call your indemnity insurance agent.

5. Infringement of copyright

Last but not least is the classic copyright case. These cases are harder to detect but more common in the publishing industry obviously, so still really important to mention. For other industries, there are firms that specialize in helping businesses find competitors that are infringing on their copyrights.

For example, this could be other companies using your product photos, stealing your patent, or using your name in any way. Once you find these people it can be really costly to take them to court and get them to stop using your name or images. So it’s important to have indemnity insurance for when these cases do arise.


Professional indemnity insurance is a super useful policy to have in case something happens. There are lots of cases for which this type of insurance could be valuable. I wish I knew about this when I first started my business. So now that you have more info, check out your local providers and see if this is right for you.

About Author:  Written by Meghan Hale, a content writer at Plant Sumo and editing machine. You’ll find me yelling at my dog to stop barking, whether it be at the neighbors or on a long afternoon walk   


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