How Much Professional Indemnity Cover Do I Need?
The amount of professional indemnity cover you need will depend on the work you do and the level of risk involved.
Some factors to take into consideration include:
- Size of your business, usually including annual turnover. As your business grows you can extend the level of cover needed.
- Your contractual requirements.
- Potential legal costs you could face.
- The minimum amount of cover required by your membership or regulatory body and legislation.
Your regulator, professional body or client contracts should be able to tell you the minimum amount of cover you are required to carry.
If a client contract does not specify a minimum level of cover, then it would be worthwhile asking how much cover they consider is acceptable before you purchase cover.
The same is applicable to your membership or regulatory body. Details about the required minimum level of cover are usually contained in your membership agreement, if you are in any way unsure, contact to your them directly to find out.
Who benefits from PI insurance?
Typically, PI insurance benefits businesses that provide, services and advice or designs to their clients.
Many different types of professions fall into this category, including; engineers and construction contractors, IT contractors and business consultants, creative media professionals, and even some healthcare professionals.
All of these professions are exposed to different types and levels of risk, which will have a bearing on the level of cover needed and the price of the annual premium.
What does PI insurance cover?
Professional Indemnity insurance covers you and your business if a client suffers financial loss as a result of work you have complete for them. The policy is designed to provide cover for professional negligence, errors and omissions, unintentional breaches of copyright and/or confidentiality, data protection prosecution defence costs, loss or damage to documents.
If you further information on how much cover you need and would like a quotation, contact the Caunce O’Hara team today on 0333 321 1403
Or click the quote button to build your Professional Indemnity Quote online in minutes!
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