What is Professional Indemnity Insurance (PII)

What is Indemnity Insurance?

Professional Liability Insurance (PLI), also defined as Professional Indemnity Insurance (PII) and commonly called Errors & Omissions (E&O) in the USA, is an integral part of running and protecting a retail shop against negligence claims.  No business owner ever plans to make professional mistakes and having insurance gives you peace of mind that if something happens, aid is in place. Professional indemnity insurance covers several areas of business; this article will explain what it can include in a retail store and the benefits of choosing different liability insurance options.

Why Your Retail Shop Needs Professional Indemnity Insurance

Misleading and Deceptive Conduct

As mentioned before, the allegation made against a retail store may not be the owner’s fault, or it was unintentional. If a customer buys a product from a store and the product is faulty or doesn’t meet the stated standard, this can leave a customer outraged, with the potential to place a claim against the store. P.I.I. will cover the legal costs to defend the store without enduring additional premiums. It can also protect members of staff if the complaint is made against an individual.


Retail stores are very competitive and to compete against each other, sometimes they must offer discounts or different tactics to gain business. This can be a dark area to go into if another store thinks their store is being slandered, they have the right to confront their competitor in court and prove their case. Although they might be wrong, a store will need to protect their image and will need insurance professionals to help make all the correct decisions and cover costs.

Breach of Intellectual Property Rights

If two stores have similar ideas or one has copied, this can be an infringement. If one store has the rights to an idea, then they can pursue a court battle to correct the wrongful party involved. Being insured will benefit the store in both situations, it can help defend your intellectual property rights and pursue the allegations if someone infringes on your rights.

Damages Arising from Fraud

A store may be accused of fraud that it wasn’t even aware of if someone decides to take the issue a step further legally insurance will be needed. It also works oppositely, if a store has evidence that a supplier or third party has committed fraud against the store insured shop will also help in the legal knowledge and costs during the case.

Defense Costs Associated with Claims

Professional indemnity insurance should always be bought to protect your store against other claims as a minimum. There are different levels of cover that range from £300,000 ($405,591) up to £60m ($80M) depending on the size of the store and the exposure risk.

Overall, it is essential to be covered. A store doesn’t have to have been in the wrong for someone to accuse them of any of the above, having insurance will help guarantee their innocents proven. Some of the mentioned points may not apply to some retail stores, so most providers will have different packages available for different cover.

What Next?

Consider different options and levels of coverage; prevention is a lot better than having to recover from a claim made against your business. Speaking to someone in the field will also help with understanding this insurance more, and they will even help you minimalize risk going forward.

Learn About Harbortouch POS Systems

Harbortouch is a premier provider of POS systems for retail stores, visit https://www.harbortouchpossoftware.com to learn more about our retail products and services or visit our Google+ page Harbortouch POS Systems.

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