We all make mistakes – it’s a fact of life. But unfortunately, some mistakes can end up costing you thousands of pounds. Regardless of whether you’re self-employed, run a small operation or a national business, if you’ve provided a subpar service, damaging advice or created products that didn’t meet the client’s specifications, you could be held liable for the costs charged to the client. Professional Indemnity Insurance provides your business with cover for the legal costs of expenses in defending the claim, as well as any compensation sought to amend the mistake.
Professional Indemnity Insurance – as part of your Business Insurance quote – can cover you against a range of business mistakes, such as:
- Professional negligence.
- Loss of documents or data.
- Unintentional breach of copyright and/or confidentiality.
- Defamation and libel.
Who Needs Professional Indemnity Insurance?
Many professions require Professional Indemnity Insurance as part of their industry body’s regulatory requirements. However, even if you’re not obligated to have Professional Indemnity Insurance, without it, you could be liable for thousands of pounds worth of legal fees and compensation payments – not to mention lost income from the time spent defending any allegation.
Professions that may need Professional Indemnity Insurance include:
- Management and business consultants such as marketing consultants, training consultants and education consultants.
- IT professionals including IT contractors, consultants, programmers and developers.
- Technical and engineers contractors including CAD designers, project engineers and offshore oil and gas engineers.
- Designers such as web designers, graphic designers and interior designers.
- Fitness professionals including personal trainers, dance teachers and yoga instructors.
How Much Professional Indemnity Insurance Do I Need?
Selecting a Professional Indemnity Insurance limit as part of your Business Insurance policy depends largely on your company’s situation. If you only need Professional Indemnity Insurance for a certain project, then it’s possible the client will have a specified minimum. It’s always worth checking this against your industry body too, and we advise checking this before arranging Professional Indemnity cover.
Alternatively, imagine a worst case scenario if you were to make a mistake on a piece of work for a client, and estimate the cost of putting it right. Remember to take into consideration any legal fees and losses that could be incurred by your client as a result of the error.
At The Insurance Octopus, we can’t stop accidents from happening, but Professional Indemnity Insurance can give you up to £5m worth of cover – with up to £5 million worth of Public Liability Insurance cover also included, should you wish. To learn more about our Professional Indemnity Insurance offerings, please get in touch with us today and for your Professional Indemnity Insurance quote, please click here.