What is essential for AAT licensed members to protect against professional negligence claims?

Professional indemnity insurance is crucial for AAT licensed members as it specifically covers claims made against them for professional negligence. This type of insurance protects practitioners from financial loss arising from legal costs, compensation costs, and damages that may stem from alleged failures in the professional services they provide. Given the nature of their work, AAT members can face claims related to errors, omissions, or advice given that could negatively impact clients’ financial outcomes or business decisions.

While general liability insurance protects against claims of bodily injury or property damage, and property insurance covers losses or damage to physical assets, these do not address the unique liabilities associated with professional advice and services. Health insurance, on the other hand, pertains to medical expenses for the individual provider, not to professional conduct.