The Nature of PI Insurance

For any young or newly established contractor, getting to grips with contractor insurance can be a puzzling and daunting prospect, and activity on social networking sites shows confusion growing regarding the nature of professional indemnity insurance.

Technically speaking, Professional Indemnity Insurance or PI Insurance will protect you against the cost of defending claims where it is alleged that a client has suffered financial loss as a result of your error, omission or negligence. Basically, the cover acts as a safety net, covering the costs and troubles of a potential claim made against you as a result of any mistakes you make in the workplace. This is an essential policy for contractors as contracting can be regarded as a high risk occupation, leading to increasing possibilities for professional error. PI insurance basically protects a contractor’s professional indemnity, giving a freelancer not only great and vital protection, but also that well needed peace of mind in such a stressful and sometimes pressurising line of work.

The cover can be purchased annually and is found at the Qdos shop for only £147.00. It is a policy that is often compulsory with many contracts and aids in clinching a contractors IR35 status, again adding value to an already vastly sought after policy.

Keeping on top of your insurances is always a pain, but by understanding your policy and trusting your insurance providers, PI Insurance can be one less worry for a budding contractor.
By:Steven Bailey

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