Professional indemnity insurance that protects you and your business
No matter how professional, experienced and cautious you are, mistakes can happen. Any business that provides a service to customers should consider professional indemnity insurance.
Sometimes referred to as PI insurance or professional liability insurance, this is an important type of cover for businesses, freelancers and contractors. Our PI insurance policy provides protection for your business if a client is unhappy with your work or advice. It also covers legal costs and expenses in defending a claim as well as compensation payable to your client for loss or damages.
Getting professional indemnity insurance cover is quick and simple. You can get cover for as little as £6.54 per month (£78.40 per year), interest-free. Get in touch with the Caunce O’Hara team to discuss the right level of cover for your needs.
What is professional indemnity insurance?
Professional indemnity insurance is a type of liability insurance that covers the costs of your legal defence and compensation claims if a client takes legal action against you. If you offer professional advice, services or designs that are incorrect and your client suffers a financial loss, they can make a claim against you. Professional indemnity insurance will cover you in this instance.
For professionals offering advice and services in the UK, it is an essential type of insurance. In the United States, it is known as Errors and Omissions insurance, which is a great way of explaining what it covers. If you make an error in your work or leave out something essential, you won’t be liable for the legal costs of putting it right.
What does professional indemnity insurance cover?
It’s important to remember that PI insurance can only cover you for making a mistake. If you are negligent in your work or if you promise something that you cannot deliver, then you won’t be covered. Professional indemnity insurance can cover you for mistakes including professional negligence, unintentional breaches of copyright or confidentiality, Data Protection Legislation Prosecution Defence Costs and Loss or Damage Documents.
Do I need professional liability insurance?
Many professionals will need this type of insurance in order to join their respective professional bodies. Some clients may demand that their freelancers and contractors have professional liability insurance to cover the value of your work. However, even if it is not required or requested, freelancers and contractors can benefit from the protection professional liability insurance offers.
You could be liable for thousands of pounds if you offer advice or a service which leads to your client losing money. If you do any of the following business activities, you should consider professional indemnity insurance.
- Offering advice or professional services to clients as a contractor or consultant
- Providing designs as an architect or engineer
- If a client that requests you take our professional liability insurance.
- Part of an industry regulator or professional body that requires insurance coverage to be a member.
The following professions will benefit from PI insurance cover:
- Some Health Care Professionals
- Health and Wellbeing Professionals
- Creative/ New Media
- Construction Contractors
- Energy Contractors
- Finance Consultants
- IT Contractors
- Legal Professionals
- Management Consultants
If your work brings you into contact with members of the public, then public liability insurance can be combined with professional liability insurance to complete your cover.
Is it a legal requirement?
While it isn’t required by law, some professional and regulatory bodies require you to have professional indemnity insurance. Legal professionals, financial advisors, accountants, certain healthcare professionals and architects may be required to have this type of insurance in order to be a member of their regulator or professional body. Even if it isn’t a legal requirement, many businesses, freelancers and contractors can benefit from the protection it offers.
What is the difference between public liability and professional indemnity insurance?
Both types of insurance are useful for business owners, however, they offer different types of coverage so it’s important to understand the difference. The main difference between public liability and professional indemnity insurance is the types of claims covered. While professional indemnity insurance covers you for negligence in the work you do, public liability covers you in the event a member of the public is injured or their property is damaged. Some businesses only need one type of coverage because of the nature of their work, while others will need both. If you’re unsure about the difference between public liability and professional indemnity insurance, get in touch with our team.
What are the types of professional liability coverage?
There are two ways that insurance policies are written. The first is claims made coverage, which means that you’ll be covered for any claims made for the duration of your coverage, regardless of when the incident actually occurred. The second is claims occurring coverage, which will only cover you for work done during the insurance coverage period. It’s important to understand the terms of your agreement. Our team can help to talk you through the policy options in plain English so you won’t be left in the dark.
How does professional indemnity insurance work?
It’s important to choose a policy that suits your individual business and industry. For example, coverage for designs will be relevant to an architect, but not to a solicitors practice. Ensuring that your policy reflects your needs is essential. Most policies work on a 12-month basis and you will pay a monthly premium for your coverage based on the excess. The excess is the initial part of the claim that is not covered. As a rule, the higher your excess, the lower your monthly premium. Likewise, if you choose a low excess, you can expect to pay a higher monthly premium.
How much does professional indemnity insurance cost?
You can get coverage from as little as £6.54 per month, interest-free. The final premium will depend on the level of coverage you choose and the excess amount. To build your ideal insurance policy, get in touch with the friendly team at Caunce O’Hara.
What level of professional indemnity insurance do I need?
This will depend on the value of the work that you do and the potential liability. With a few simple questions, we can help you build the ideal insurance policy coverage that will protect all areas of your business. Start building your quote today.