Professional Indemnity

If you are in the business of selling your knowledge or skills, you may want to consider taking out Professional Indemnity insurance.

Professional Indemnity insurance protects your business against claims for loss or damage made by a client or third party if you make mistakes or are found to have been negligent in some or all of the services you provided.

Many professions are required to have Professional Indemnity insurance cover as a regulatory requirement or as part of their professional authorisation. This includes solicitors, accountants, architects, mortgage intermediaries, insurance brokers and financial advisers. Many consultants, advertising and PR agencies and designers choose to have this type of insurance.

One important aspect to bear in mind when considering professional indemnity insurance is that cover is usually on a claims-made basis. This means that the policy will only cover claims that are made while the policy is ‘live’. So if you plan to cancel your policy when you close your business or retire, you may need to arrange ‘run-off’ cover for a period of time afterwards.

One way to minimise such claims is to make sure projects are well documented. Ensure that you set out specific responsibilities in your contracts with clients beforehand and deal with complaints promptly.

If you would like a no obligation chat and are located in Ulverston, Furness, The South Lakes or Cumbria, call us on 01229 585818.