What type of insurance should Mark have?

Mark is a consultant who works with building managers and advises them on how to make their buildings safer.

What type of insurance should Mark have?
A . Public Liability
B. Product Liability
C. Professional Indemnity
D. Property Insurance

Answer: C

Explanation:

Mark needs professional indemnity insurance. Types of insurance is a known exam topic and the study guide does not cover this particularly well. Types of insurance is mentioned on p.25 but Pro-fessional Indemnity Insurance isn’t really explained and this does come up in the exam. Professional Indemnity Insurance is needed when your job is to give advice to people (like as a Consultant). It’s used for if the advice you give turns out to be bad. For example, if Mark told the building manager he should get ABC Fire Alarm installed, and actually this Fire Alarm doesn’t meet the necessary Health and Safety standards, he could get sued by the building manager. He could then claim on his Professional Indemnity Insurance.