What is PI Insurance?
Posted on 14th February 2017 by Nigel Johnson
As a freelancer, the world of insurance can be a confusing maze to begin with then throw the term ‘Professional Indemnity’ into the mix and you will find contractors running for the hills. Most contracts in industries such as Financial Services, Legal, New Media or IT will require their contractors to hold a certain level of Professional Indemnity cover.
So what is Professional Indemnity insurance?
Professional indemnity insurance protects you against negligence claims arising from the provision of your professional services. . A simple claim can potentially have disastrous consequences and in many events could cripple a small business. We believe freelancers take pride in their work, but mistakes do happen and perception of quality can vary from person to person.
Should the worst happen and you receive an indication from a customer that he is dissatisfied with your work and intends to make a claim against you then your first port of call is Caunce O’Hara and we will guide you through the process and notify your insurer. If required your insurers will appoint a solicitor to investigate liability, defend the claim or alternatively agree a settlement.
So how do you work out how much cover you need?
Points to consider are terms of any contract you are entering into; does it state a minimum level of cover for professional indemnity? What is the value of the project you are working on and what responsibility will you have within this project? Also don’t forget to take into consideration the legal costs in defending a claim, you may not have made an error, but you still may need to defend an allegation against you and legal costs can mount up frighteningly quickly.
The cost of Professional Indemnity policy may be a worry for some freelancers, but with prices starting from just £98, its affordable, necessary protection. We offer levels of £100k, £250k, £500k, £1m, or £2m. This can be purchased at an aggregated or any one claim limit. We also have the option to increase your professional indemnity limit up to £3m, £4m or £5m dependent on your circumstances.
Professional Indemnity insurance is on a “claims made basis” which means the policy in force at the time of the complaint or claim will respond not the policy in force when you carried out the work. A huge benefit of the policies we offer is that they do not include a retroactive date, all work you have carried out whilst trading is covered from the minute you arrange cover.
You can obtain a FREE quote online within minutes here www.caunceohara.co.uk/quote/policiesBack to News