If you are a provider of professional services such as an Architect, Computer Contractor, Management Consultant or Photographer then the simple answer is, yes, you may need Professional Indemnity Insurance.
Unless you can claim that the services you provide are 100% accurate and can confidentially say you have never made a mistake, it is more than likely that at some point during your career a client will wish to take action against you for financial loss to their business.
You can however ensure that you have the perfect protection against situations where you may be liable and ensure that your business will not suffer irreparable damage, to both your finances and your reputation, from a single mistake with the help of a PI policy.
What will Professional Indemnity Insurance cover me against?
The most important cover you will receive is protection against compensation claims. Even when the claim itself is small the legal fees required to successfully fight a case could be huge. Your Professional Indemnity Insurance will cover these costs and stop them from impacting your cashflow.
You will be protected against claims for loss or damage made by a client or third party. If you have been found to be negligent in the course of providing your service, be it an accidental oversight or not, a claim could be made against you.
Do I legally require Professional Indemnity Insurance?
In some professions, particularly those involving financial advice and services such as Accountancy, it is a legal requirement to have adequate Professional Indemnity Insurance.
For other industries it may be a requirement in order to become accredited by trade associations, or to become a member of the essential organisations necessary to operate legitimately within the industry.
Will having Professional Indemnity Insurance help my business?
Even if Professional Indemnity Insurance is not a legal requirement for your profession it may make the difference between securing a contract or not, particularly in freelance and creative industries.
If you can show potential clients that you have comprehensive Professional Indemnity cover it presents you as a serious professional who is aware of the potential risks of entering into a contract of work.
Besides the peace of mind provided by your insurance it is also important to keep detailed records of all the work you undertake and make sure your contracts are watertight. Both of these will be very useful if you ever need to make a claim.
How do I get the right Professional Indemnity Insurance for my business?
As this is a specialist area of insurance, it is a good idea to let an experienced insurance broker speak to insurers on your behalf. Our team of specialists have established relationships with a wide range of insurers, both specialist and niche and provide you with a wealth information in order to ensure you’re protected.
To talk to us today for more information.