A professional indemnity insurance policy can cover the costs of compensation for loss or damage resulting from negligent services or advice provided by individuals working in your business, not to mention associated legal costs.
Having professional indemnity insurance in place can also be a major trust signal to clients, who may see it as a necessary requirement on your part. Even the level of cover provided may be important to them.
Do I need professional indemnity if I don’t belong to a trade body?
If you offer your knowledge, skills, or advice as part of your profession – either as a self-employed individual or for a company ¬– you should at least consider taking out professional indemnity insurance.
Mistakes can and do happen, leaving you open to legal costs and claims for compensation. Professional indemnity cover can give you peace of mind that you have a financial safety net in place, so you can continue to focus on doing the best job you can for your clients.
How easy is it to arrange professional indemnity cover?
With the help of a broker, you can answer insurers’ questions about how the business is run and satisfy them that you meet their criteria for providing cover. They will want to be reassured, for instance, that processes and operations are well managed, that staff are well-trained, and that you have a suitable client/staff ratio.
How much does professional indemnity cover cost?
Premiums can depend on the level of cover you need, relating to the type of work you do. For instance, professional building survey work can require cover against claims relating to surveys, but if you don’t do such work, you won’t need it including in your policy.
You can shop around and find the cheapest cover online, but check it meets the requirements of any trade association you belong to and that the advice and practical support you need will be there if you find yourself facing a claim.
Am I covered for mistakes by past employees?
Many professional indemnity policies offer “run off” cover because people can lodge claims up to six years after the event. The employee behind a past mishap may have moved on by then, but it’s the business that is being sued, and policy run off cover can help to ensure it is still protected.
Do I need professional indemnity and public liability insurance?
It is possible that you will benefit from having both, as they address very different risks. Professional indemnity insurance can cover claims made by clients for professional negligence or mistakes, whereas public liability insurance can cover claims made by members of the public for injury or damage.
Public liability cover can be included with general business cover. Insurers may look much more closely at how your business is structured and run before offering public liability cover.
It’s worth noting that the cover provided by professional indemnity for managing agents differs from directors’ & officers’ liability cover, which is offered to people who voluntarily run Residents Management Companies (RMCs) and Right to Manage (RTM) Companies.
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We understand that cover and price are important to you, and we will search our panel of well-known insurers to help find you suitable protection. Connect with a specialist or call us on 0800 612 8631.