Professional Indemnity Insurance

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Professional Indemnity Insurance protects companies and their workers against compensation claims by third parties where mistakes have been made, or there has been negligence in the provision of some or all the services. The legal costs to defend any claim are also covered by this insurance.

A number of professions must have Professional Indemnity Insurance such as accountants and lawyers, and as with Public Liability Insurance, it is generally a contractual requirement to have suitable Professional Indemnity cover in place when working on contract.

An example of a typical claim on a Professional Indemnity Insurance Policy would be, if data was permanently deleted data from a client’s hard drive, due to an error by an IT Contractor. The claim would be for the costs incurred in replacing the data and any subsequent loss of business.

As a Freelance Contractor, the contract you are working on may stipulate that you must have a certain level of Professional Indemnity Insurance, you should therefore ensure that the cover that you purchase as a Sole Trader or a Limited Company owner, or if you are working as an employee of an Agency or an Umbrella Company that the cover that they hold is appropriate for both the contractual requirements and for your specific occupation, as some policies exclude certain professions.

For a no obligation quote from upto 20+ of the UKs leading insurers visit The Business Octopus on line or call them direct on 0161 968 2041.

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