Professional Indemnity Insurance
What is professional indemnity insurance?
Professional indemnity insurance, also known as errors and omissions insurance, provides protection in the event that any of the agents, advisers, representatives, members or employees of a firm who, in the course of their business, give mistaken or incorrect professional advice or service. A Professional Indemnity (PI) policy protects companies or individuals from these errors in the event that provision of this advice or service may lead to a claim for compensation. The international business environment is becoming increasingly litigious and with significant variations in the regulatory framework, even within the EU, the exposure to professional claims is increasing significantly.
It is important to check your financial adviser’s regulatory status to ensure that he or she is fully authorised to provide advice to you. This way you will have full recourse should something go wrong.
Why do firms like ours need professional indemnity insurance?
A PI cover is a legal requirement for certain professionals (depending on jurisdiction), such as financial advisers, and firms need to have PI policies in place in accordance with these regulatory rules to support their ability to meet liabilities as they fall due and to protect their clients. Professional Indemnity also minimises the risk of severe financial penalties as a result of incorrect advice or incomplete delivery of services. Professional indemnity insurance provides peace of mind that a business is protected in the event of a mistake.
Professional indemnity insurance at Blacktower
Blacktower operates in a number of highly regulated environments and we are required by law to carry PI that cover errors, acts and omissions conducted or undertaken by the insured. Cover is approved by each and every one of our regulators and is examined each year on submission of our individual regulatory reports. Blacktower’s PI cover is truly Global and covers US citizens as well, so it is relatively unique. In all cases Blacktower carries far in excess of the regulatory minimum cover required for our group businesses as a whole.
A PI policy also helps Blacktower attract and retain high calibre international staff and advisers who are unlikely to work with companies where everyday business risks were not adequately protected. All Blacktower financial advisers and board members listed on our website are covered by the Blacktower worldwide PI policy.