*Based on an IT contractor earning up to £250k per year
Sometimes we make mistakes. As a business, a mistake in your services could financially impact your clients. That’s where Professional Indemnity Insurance comes in.
Professional Indemnity Insurance protects you from legal action brought against your business by a client for negligence, omission, or error in the services provided to them. This can include the loss of important documents or data, unintentional breach of confidentiality, and other mistakes and oversights alleged to have been made during the provision of services.
PI insurance covers the legal costs of defending your case, and in the event that your company is found liable, the policy will cover the compensation owed as a result (up to the limit of indemnity for the policy).
You will most likely want Professional Indemnity cover if your work involves providing professional advice or services. Bookkeepers, consultants, and engineers are good examples of the type of work that would benefit from this cover, but it’s a worthwhile policy for many self-employed contractors, sole traders, and partnerships from a range of industries.
When it comes to deciding the limit of indemnity (cover limit) you should opt for, you should check the contract you hold with your end client. If you don’t match the insurance requirements stated by your end client, you could be in breach of your contract.
Professional Indemnity is a popular business insurance policy which covers your defence costs and liabilities should one of your clients bring legal action against you for alleged professional negligence, errors, or omissions in the services you provided which caused the client a financial loss.
Ask away! One of our team will get back to you!