We often get enquiries from clients that offer Graphic Design as a complimentary service to their business offering as to whether or not they need Professional Indemnity cover (PI). Often it is the obligation to hold PI as part of a tender or contract that initiates the conversation and is a trigger to engage us to offer further insight and guidance.
The answer is relatively simple, yes! Public and Products Liability policy does not provide the protection you may need when offering professional services, which Graphic Design is considered to be.
Most (if not all) Public and Products Liability policies typically include a “Breach of Professional Duties” exclusion, the impact of which differs among the insurers and has a range of severities depending on the policy you have. Broadly speaking, it excludes cover that should otherwise be insured under a Professional Indemnity policy. This very exclusion is the sole reason businesses offering Graphic Design may require PI cover.
With this in mind and in its’ simplest form, PI provides cover against claims made against the insured for liabilities owed to third parties arising out of ‘Professional Services’ charged for a fee. Professional Services can be interpreted to have a very broad definition, and can overarch across services like advice, consulting, design, instruction etc.
The cover trigger under a PI policy (a “trigger” is the term we use to describe an event that triggers a response from a policy) is very different to Public and Products Liability, whose triggers largely involve injury and/or damage only. With the risks associated with Graphic Design not at all related to injury or damage, Public and Products Liability cover clearly won’t be the target policy should a Graphic Design related claim arise. This is the main reason a gap in cover can exist for businesses undertaking Graphic Design and why you’ll likely need PI cover.
With many years of experience advising and protecting businesses offering Graphic Design, we’ve built a deep understanding of these types of risks and are experts at identifying and mitigating the gaps in cover Graphic Design can create. For further information please feel free to get in touch with the team at MMSE and we can help you make informed and well-educated decisions on your specific risks.