Professional Indemnity Insurance
At Business Line Insurance we know how important it is that, as a contractor or business owner, your operations are seen to be credible and trustworthy. It’s important that you can reinforce to your clients that you have the correct protocols in place to ensure that, whatever your trade or profession, the work you undertake does not place your clients’ operations, staff or customers at risk. However, sometimes things do go wrong, and professional indemnity (PI) insurance can give your clients and your partners’ additional peace of mind should a problem arise.
For contractors and business owners, it has never been more important to have a professional indemnity insurance policy in place. As a result of volatility in the economic climate, and an increasingly litigious society, it is likely that clients will be less hesitant to act in the event that something goes wrong. If your work, service or advice causes your client to suffer, be that personal injury financial or reputational loss, you need to ensure that you’re protected.
If you have heard about professional indemnity insurance but are unsure what it is or why you need it, read on to find out more.
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What is professional indemnity insurance?
PI insurance covers the intangible elements of the work that you complete for clients. For example, it can help to protect you in the event of financial loss as a result of faulty design, poor advice and even unintentional copyright infringement. In addition, in the event of a claim being made against you, a professional Indemnity insurance policy will also cover your business for legal defence fees, as well as compensation costs that you may owe due to damages.
What professional indemnity insurance covers
A typical professional indemnity insurance policy will provide cover for the following:
- Professional negligence: If you give your client incorrect advice or make a mistake, this will provide the cover that you need.
- Defamation: Your client could choose to sue you if you produce or support libelist statements about them.
- Confidence breaches: Sharing sensitive information without having the permission to do so.
- Copyright breaches: Infringing on copyrights, trademarks or intellectual property.
- Lost or damaged documents: If you lose or damage documents that belong to your clients, they could decide to sue you.
- Employee cover: If the actions of an employee cause a financial or reputational loss for your client, this will ensure your business is protected.
- Legal defence costs: If your client takes you to court, this will cover the costs that you could incur.
- Fraud and dishonesty: If your client considers that your business has acted in a fraudulent or dishonest way, this will provide protection.
These are just examples of some of the types of professional indemnity insurance cover that we can arrange at Business Line Insurance. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.
Do I need professional indemnity insurance?
Not every type of business or contractor requires PI insurance, and the requirement for cover usually depends on the industry you work in and the type of work that you do.
If the work you do involves providing advice or services to clients, such as a consultant, solicitor, architect, financial advisor, accountant or graphic designer, then it could be beneficial for you to consider having a professional indemnity policy in place.
In addition, depending on your profession, it may also be a requirement of your regulatory body that you have professional indemnity insurance in place too, so it is something that you should check.
How much professional indemnity insurance cover do I need?
The amount of cover that you need for your PI insurance policy depends on several things. Firstly, if it is a requirement of your business contract to have cover in place, this will usually specify the minimum amount that is needed. Secondly, it’s important to consider what the total value of your project is in terms of how much you’re being paid, and lastly it could also be worth asking your regulatory body for some advice.
How much does professional indemnity insurance cost?
At Business Line Insurance we understand that cost is important to your business, but it is crucial to ensure that you are properly protected in line with the risks your business faces. With that in mind, we will take the time to understand the specific needs of your business and recommend the amount of professional indemnity insurance cover that is best suited to you.
What else do I need to know about professional indemnity insurance?
It is also important to be aware that a professional indemnity insurance policy will also cover your business against bodily injury and property damage claims, in the event that these have occurred as a result of building designs being completed incorrectly and issues with the professional service you have delivered. For example, this could be in terms of property damage as a result of an architect providing incorrect structural calculations which cause a building to collapse.
How can I get professional indemnity insurance?
Business Line Insurance have a team of experienced professional indemnity insurance advisers ready to help you get the right protection in place for your business.
We will take the time to understand the specific needs of your business and are committed to delivering a completely personalised service, ensuring that you have the best possible cover at the best possible price.
To find out how much peace of mind costs, contact Glenn Bowles by calling: 020 3058 4309.