PI insurance: Quirks and quandaries
Nobody is perfect. Everybody makes mistakes. But unfortunately, for professionals, a mistake at work could have more catastrophic consequences than forgetting a friend’s birthday, explains Fenchurch Law’s Rob Fink.
Mistakenly omitting to account for a relief when calculating a client’s tax liability, or submitting an incorrect balance sheet, can lead to you, or your firm, facing a professional negligence claim for what could be a significant sum of money.
Professional Indemnity Insurance (PII) is there to provide comfort for accountants and other professionals, the aim being to provide protection in circumstances where you have, for whatever reason, made a mistake. It is comforting to have peace of mind knowing that your insurers should be there to step into your shoes, and defend claims that may be made against you.
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But a lawyer will only claim
If you have insurance.
The uninsured seem to get away with gross negligence every time.
Bit concerned about late payers....had loads of those over the years and some that never had any intention of paying in the first place........no PI claims though.
Would you actually make a mountain out of a molehill by telling your insurer every time a client tried to avoid paying the bill.