Consider professional indemnity insurance and get covered today
Professional indemnity insurance, also referred to as PI insurance, is a type of business insurance that covers you for costs if you make a mistake in a piece of work for a client that causes them financial or reputational loss.
From consultants and accountants, to designers and recruiters, professional indemnity insurance is important for many business types. It might be needed by a self-employed person like a consultant or an accountant, or by a company doing certain types of work. Businesses that might benefit from PI insurance are those that:
If you give incorrect advice or make a mistake
If you produce or support libel statements about your client
If you share sensitive information without permission
If you infringe on copyrights, trademarks or intellectual property
If you lose or damage documents while they’re in your care
If an employee commits a malicious act that causes a loss for your client
Most insurers offer between £50,000 and £5 million in terms of cover. To get a good idea of how much you’ll need, check:
If your contract requires you to have professional indemnity cover it’ll usually specify the minimum amount you need
Factoring in how much you’re being paid, and the overall value of your work can help you judge the appropriate level of cover
You can always ask any regulatory bodies for help and guidance
Insurers will set your premiums for professional indemnity insurance based on factors such as:
Size and type of business: Bigger businesses generally have more at stake when it comes to financial and reputational losses, so you’ll generally need higher levels of cover if your client is a big company
Nature of the work you do: If your business faces high levels of risk, then insurers are also likely to charge more in premiums
Business insurance comparison: You can use a comparison tool to compare business insurance quotes. MoneySuperMarket has teamed up with Simply Business to help you compare personalised business quotes and make sure you’re properly covered.
Losing someone important to you is never easy, and if you’re a business owner you will also have to consider the impact losing a key person can have on your operations.
Taking out a key person insurance policy can protect your business in the short term by providing a cash boost. So if someone key to the operation of your company passes away or becomes unable to work as a result of their health, it can help you survive in the short term and give you more time to make long-term plans.
If you work in certain professions, regulatory bodies might require that your business has professional indemnity insurance, however, it isn’t strictly a legal requirement.
Yes, as it can be classed as an ‘allowable expense’.
● Public liability insurance: If any work carried out causes injury or property damage
● Professional indemnity insurance: If a client decides your work or advice is inadequate
Professional indemnity insurance is not premise based so it doesn’t matter where you’re working, if you’re offering advice then you need PI.
You’ll also be able to add any of the following policies to your overall business insurance:
● Public liability cover: Public liability insurance covers your business for the cost of any compensation claims you might face if someone becomes ill or injured, or has their property damaged as a result of the work you do
● Employers’ liability cover: Employers’ liability insurance covers legal costs resulting from an employee becoming ill or injured, or having their property damaged as a result of your business
● Product liability cover: Product liability insurance protects you against the cost of legal fees resulting from someone becoming ill or injured, or having their property damaged by a product you sell – which you may be liable for even if you didn’t manufacture it
● Business interruption cover: Business interruption policies cover you for lost income if the running of your business is interrupted by an insured event such as a fire or flood
● Business buildings cover: Also known as business property insurance, this covers you for the cost of any damage done to your premises resulting from an insured event
Any new business interruption policies sold won’t cover claims resulting from events that are already taking place – so business interruption claims related to COVID-19 are unlikely to be successful.
Comparing business insurance deals with MoneySuperMarket and Simply Business is the easiest way to find a cheaper quote for your company. Just give us a few details about your business and employees and we’ll show you a list of quotes tailored to your requirements.
You’ll be able to compare deals by their overall cost, the cover you’ll get and any extra policies you can add to your overall business insurance. Once you’ve found the provider and quote you want, just click through to the provider to finalise your purchase.
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