If you work in a business where your advice or expertise is key, you should be confident in your abilities. However, mistakes are possible and when they do occur they can be costly. Professional indemnity insurance helps to protect you should your client suffer monetary loss due to your work for them.
What exactly is Professional Indemnity Insurance?
Professional indemnity insurance is important if your business or professional service is key to your business. It protects you against compensation claims and legal fees should a client suffer financial loss due to negligence in your advice or work.
Do I have to have Professional Indemnity Insurance?
Professional indemnity insurance is not a legal requirement. However, in many industries it is essential to become a member of a professional body or to suit professional regulations. Business owners working in consultancy often aren’t required to have this type of insurance, but it can be essential should a claim occur. Other sectors that should seriously consider professional indemnity insurance including tutors, freelance recruitment professionals, designers and personal trainers, for example.
How Much Professional Indemnity Insurance do I need?
Assessing how much cover is necessary is essential before agreeing to any policy. The amount of cover you need will depend on your business activities and the nature of your business. This is one of the more difficult types of insurance to gauge the premium amount.
Each business owner needs to look at the potential financial damage possible should there be a claim. This can be difficult to work out and it means each policy needs to be uniquely tailored to the individual and the business. Too much cover is less of a problem than not enough. Keeping this in mind can widen your options.
Just Quote Me specialise in insurance for businesses. We can discuss your specific requirements and connect you with professional indemnity insurance providers to suit your needs. Contact us today to get things started.