Media and Creative Insurance

Yes. When you are working as a freelancer, sole trader or contractor, you are not afforded the same protection as employees of a larger organisation. You will be responsible for the financial obligations of your business and therefore insurance is a must-have for any business seeking to protect the risks of being self-employed.

The right policies for you will depend on the risks or losses you are exposed to or concerned about. There are a range of insurance policies available covering a variety of risks, from income protection and travel insurance to policies designed to cover your legal liability to third parties. Two popular examples of the latter include the Professional Indemnity and Public Liability Insurance provided by Qdos. 

The circumstances in which the policies react differ depending on the policy taken out, however the cover provided broadly falls into two main areas:

• Representation/Defence costs
• Legal liability

The Professional Indemnity Insurance policy from Qdos will cover any legal representation and defence costs, as well as the liability found to be owing following a professional negligence dispute. Such a dispute would occur if a client felt as though there were errors or omissions in the services provided which have caused them a financial loss.

In addition, the policy would also react in the following disputes:

• Libel, slander or defamation
• Unintentional breach of confidentiality or privacy
• Unintentional infringement of intellectual property rights

Qdos offer Professional Indemnity Insurance with limits of indemnity of £1m, £2m or £5m.

Qdos’ Public Liability insurance covers the policyholder where a third party alleges that the policyholder has, in the provision of their services, caused third party bodily injury or property damage. As with Professional Indemnity insurance, the policy will cover any legal representation and defence costs, as well as the liability found to be owing following the conclusion of the legal proceedings.

Qdos offer Public Liability Insurance with limits of indemnity of £1m, £2m, £5m or £10m. 

The time the policy should be kept in place will vary between Professional Indemnity and Public Liability Insurance due to the way they react to claims.

In order to make a claim on Professional Indemnity Insurance, a policy needs to be in place at the time a claim is made, in essence at the time the client raises the dispute against you. This means that once the policy has lapsed you cannot make a claim, even if your policy was active when the activity which has resulted in a claim was issued. Therefore, we would recommend that you continue to invest in your PI cover until you are no longer subject to any risk that the policy covers.

Public Liability insurance however operates differently. This policy will react to incidents that occur during the period of insurance irrespective of when the claim is made. This means that a claim can be made following the policies expiry and will be accepted provided cover was in place when the injury or damage is alleged to have happened. Therefore, the requirement for this policy would cease at the point the policyholder is no longer providing services.

The Qdos Professional Indemnity policy starts from just £13.50 per month, and Public Liability starts from less than £5 per month. When compared with the losses that the insurance protect against, which can easily run into thousands of pounds, the premiums are a small investment for the peace of mind. 

Professional Indemnity insurance should be considered for those providing a professional service to their clients. This means Professional Indemnity Insurance is needed for a wide range of services from web design to wedding photography. Whilst most professionals, especially freelancers, sole traders or contractors who are in business in their own right, are confident in their abilities and do not foresee any mistakes, PI provide you with peace of mind that should any unexpected issues arise you will be protected.

For the vast majority of professionals there will not be a legal requirement to hold Professional Indemnity Insurance. However, Professional Indemnity Insurance is sometimes required by industries, professional bodies, or clients. This may prohibit your ability to win a contract or gain professional accreditation.

Whilst Professional Indemnity Insurance may not be legally required, this should not be taken as evidence that you may not face the risks insured by the policy. It is therefore advised that you consider the exposure to causing your client a loss should you be negligent or make a mistake.