A professional indemnity insurance policy provides the insured with protection against the expenses of losing money through legal defence costs and compensation fees to claimants.
Indemnity claims vary in nature but commonly originate from a professional’s client losing money, suffering from reputation defamation or some other damage, as a result of advice or expert services provided by the professional.
Although this is an optional policy for businesses and freelancers, anyone providing advice or offering a specialist service should purchase this type of cover. It protects them from the potentially costly risks of client and customer lawsuits, even if the accused is not liable – professional indemnity cover also pays out for solicitor costs incurred from defending a claim.
Typical industries we’d recommend insuring themselves with a professional indemnity policy include:
There are so many professional services that can apply for professional indemnity cover in the UK, in fact the services sector accounts for 77.8% of the UK economy’s GDP (based on ONS data Q4, 2013).
Getting a professional indemnity quote and insuring yourself with us is quick, simple, and we can tailor your policy to suit your requirements. Before creating your policy have your annual turnover, business description and required level of cover ready, as we will require this information to provide you with quotations.
As an expert indemnity insurance broker, we provide a personal level of service when arranging your cover. To get a quote with one of our friendly agents today, please call us on 0800 169 6137.
For a more comprehensive policy, professional indemnity insurance can also be purchased alongside other business cover, such as public liability and employers’ liability.
If your company handles data on behalf of another business or client, your company can also be sued by the client for negligence if you breach the data protection act by mistake e.g. losing confidential files and documents in any format or if an employee accidentally leaks private information.
The cost of professional indemnity insurance varies and can be influenced by a number of factors such as the type of industry your business operates in, the number of employees your business has, etc.
The price of an indemnity policy premium, however, is most likely your preferred cost, compared to being out-of-pocket from financially compensating a client, if you’re proven liable for professional negligence.