Professional Liability Insurance: The Basics

The concept of professional liability insurance is based on arising demands for securing a remedy for undisclosed and hidden professional situations where professional may need to suffer heavy financial losses. In some country, practicing without a relevant professional policy is barred and you actually cannot practice freely in those countries. So, it is always better to know about those policies to get your professional aspirations fulfilled while practicing your skills and talents.

Internet provides you the most convenient and suitable way to secure relevant information regarding the usability of professional liability insuranceYou can also search for the different companies which provide optimal professional liability insurance for meeting the demands for professionals. So, gather your information and get the policy that matches your needs and requirements well.

Need for Professional Indemnity Insurance

Professional indemnity insurance is slowly catching the nerves of people in providing safety and security to various professionals around the world. It includes traditional professionals to today’s modern professionals like architects, engineers, insurance brokers, IFA's, solicitors, surveyors, accountants, computer consultants, business consultants, estate agents, solicitors, translators, pr consultants, environmental consultants, Internet Service Providers (ISP), website designers, programmers and Directors and Officers Insurance Quotes and several others.

Without having adequate risk coverage, it is almost impossible to run away from various professional risks while practicing in the real world. Nowadays, risks are so high that companies are taking almost everything to eliminate the associated risks. Not only company but directors and officers are insured of any professional errors and omissions to get rid of any third party claim. Especially vulnerable are the new internet companies, many of which only recently been formed particularly if there is venture capital funding or shareholders to consider.

So, professional indemnity is considered as an important tool to practice as a professional.

Professional Indemnity

Basics of Professional Indemnity

As it name suggests, professional indemnity (PI) insurance is insurance given to cover the risk bear by professionals during their tenure of service provided to the second party. However, it does not cover contract work, e.g. core-logging, drilling, mapping (unless interpretation and/or advice is required).
The main feature of professional indemnity is its legal liability. Indemnity insurance does not cover statutory or criminal liability. In simple words, this kind of insurance give you relief from the party that might file a case against a professional if that party suffered loss based on the professional’s opinion or advice. It does not cover State-inflicted penalties or criminal charges.

Indemnity insurance

Preventive Majors for Accountants and Lawyers

Indemnity insurance is the only way to seek protection against any unforeseen circumstances that may cause heavy losses fro professionals engaged in it. Becoming really popular, professional indemnity insurance is easy to seek appropriate protection to deal different types of clients in a satisfying manner. However, by taking adequate protective major at course of providing service, risks can be minimized. Here are some tips that might help you to pay the less:

Preparation of the engagement letters or similar documents should be prepared carefully as these documents reflects the rights and responsibilities of the parties and any change in these document can put a bad impact on your working relationship with your clients.

Accounting and law firms should try to develop in-house guidelines and standards, and their staff should observe them to facilitate additional checks on the ways to provide service.

Conflict of interest between the parties should be avoided. Any situation that may lead to sour relationships with clients should be checks and eliminated from the firm.

Bringing specialization can minimize or help to control professional liability exposures.
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Professional Indemnity Insurance

Action List for seeking Professional Indemnity Insurance

Are you a practicing professional and worried about any undesirable claim, omission, error and negligence while completing your commitment of service? Not to worry, the way of professional indemnity insurance has opened a door for you to shed off your worries and practice your skill and expertise openly. Taking professional indemnity insurance is not a complex process. Here are some simple steps that may help you to get a solid instrument that helps you to preserve your actions:

First of all, it is necessary for you to make a list of brokers on the British Insurance Brokers’ Association, available at their website. It will help you to short list promising brokers who can help you to get best coverage.

You can also search for a broker on the website of the Institute of Insurance Brokers in United Kingdom to get the best options.

Also, it is better to check that the broker whom you are going to choose must be a member of the ABI, listed on their website.

It is also very important to remain healthy and safety to secure a indemnity insurance. You can use various healthy & safety performance indicator to check your health status.

Further, you can enlist your needs and desires and go for looking the best broker for getting insurance coverage.

Professional Indemnity

Professional Indemnity for Architects and Engineers

Professional indemnity has changed the face of service industry. Now, professionals have gained greater confidence to practice their skills and specialized knowledge for people. However, indemnity insurance is really important for every practicing professional but architects and engineers have a special meaning of professional indemnity insurance. The nature of the work for architects and engineers is really crucial. In many cases they might have to face third party liability for breach of the contract, practicing beyond the licenses, errors and omissions while chalking out plans and designs, negligence in site survey, selection about the materials, increment of license construction costs, and negligence of supervision of site.

To deal out these situations, architects and engineers need professional indemnity insurance to back their difficult situations. Any practicing architect and engineer can apply for indemnity insurance cover to get a tension free life.

Professional Insurance

Professional Indemnity for Medical Practitioners

Professional indemnity for medical practitioners is of great importance in today’s world. Under this policy, all registered medical doctors and other practitioners have the benefit to get damages coverage against any loss or omission during the course of service provided to the third party. Moreover, it also means that a doctor or his assistant with whom risk coverage has been taken come under the net of insurance and will be compensated in case of loss occurred. However, for claiming the insurance coverage, applicants have to move to legal jurisdiction or courts. Sometimes, insurance companies also agree for a mutual settlement, if the insurance liability is provided under the agreement or policy.

Professional Indemnity

What professional indemnity insurance doesn’t cover?

Criminal Acts are uninsurable as a matter of public policy. Hence, any professional indemnity insurance policy will not include any claims that arise from dishonesty or malicious acts. Losses that constitute fines and penalties as a result of criminal acts are also excluded. However, you should know that despite these exclusions, you can normally obtain a professional indemnity cover for the costs of successfully defending a criminal action.

Internal Issues are not accounted for by any professional indemnity insurance. These situations typically arise if your staff goes on strike as a result of which you cannot offer your service as promised.

Professional Indemnity cover is restricted to claims alleging financial loss arising from bodily Injury and Property Damage Claims for bodily injury and property damage are therefore excluded. Generally, such losses can be covered under General Property and Liability Insurance policies.

No professional indemnity insurance policy will include claims arising from representations made about the likely performance of the fund, or any commitment made to achieve certain returns. Moreover, any liability accepted under a contract will be excluded unless that liability would have existed even in the absence of that contract.

PI Insurance

Do you need a professional Indemnity insurance?

Are you in the business of selling your knowledge and expertise to others who are ready to pay the price? If yes, then you are a ‘professional’ and you should definitely get yourself a professional indemnity insurance cover.

Professional insurance will primarily protect you in the event of your failure to deliver your service/product up to the agreed standards. Such inability often leads to legal battles, which often are considerably costly. Moreover, any professional should bear in mind that competing with any organization in the court can be a really costly proposition. Other than this, professional indemnity also includes the cost you might have to incur to make up for the losses.

Professional indemnity insurance is widely popular across the United Kingdom and more and more professions are now being included in the veil of professional indemnity. However, the kind of businesses that usually need this cover are professionals offering a service or advice such as architects, accountants, solicitors and consultants.

Note! To avail professional indemnity insurance, you need to be covered when a claim is made, not for when the mistake is made. Hence, be insured early.

Professional Indemnity

Any professional indemnity insurance provider needs to be professional in their service

No insurance company can excel unless it starts understanding what the client wants. In fact, so huge is the list of needs that necessitates insurance that any company without proper insight into the industry will simply fade away among its competitors. The financial consequences of litigation can be so enormous, that simple knowledge about insurance will not help. What is required is a detailed understanding of preventive as well as countermeasures.

Any professional indemnity insurance provider must provide cost effective insurance solutions to risk management, should work in tandem with freelance contractors to identify the risks and assess the level of cover needed. Though it sounds simple, actually it is not. The extent to which litigation reaches can often be unimaginable and any professional indemnity insurance policy should be offered after careful evaluation of each and every situation that might arise and what precaution should be taken.

Coulson Pritchard Associates is experienced in all forms of professional indemnity insurance and places particular emphasis on client service, risk management, creative and cost effective placements. We frequently blend our insurance programs with the use of captives and other risk financing methods in order to achieve the greatest balance sheet protection.

Professional Indemnity Insurance

Do not risk your business get professional indemnity insurance

If you are a freelance contractor, professional Indemnity insurance will protect you in case of unforced errors from your part have led to projects being cancelled because of which your client has sued you for the failure. In case such a scenario occurs, you need to have the resources to protect yourself because legal proceedings and claims can often turn out to be costly. It really does not matter how careful you are while ensuring that you deliver everything as promised to your clients, you cannot prevent unforced and unintentional from occurring. Professional indemnity insurance is the best and the only option that can save you from such unwanted incidences. Interestingly, you can even use your professional indemnity insurance to cover you against potentially payable damages.

There is a widespread misconception that professional indemnity insurance is costly. The reality is, in fact, quite contrary to this. In fact, what you pay for professional indemnity insurance depends on such factors as your yearly income, the nature of your business, the industry that you cater to, and the way in which you undertake a contract. For you knowledge, professional indemnity is claimable up to 5% allowance as a 'Schedule E' expense. When you consider these facts, professional indemnity insurance may no longer appear to you to be as expensive as it appeared before.

How much professional indemnity cover do you require?

This is the most common question put up by contractors. The ever-changing industry scenario and the cutthroat competition leave very little space for errors. Contractors, being the softest targets, are the worst and the obvious sufferers. Today, most contractors have realized the need for professional indemnity insurance but the confusion is about the extent of cover.

If you are a contractor and are not quite sure about the extent of cover that you need, you should understand that no two businesses are the same and therefore there cannot be any specified amount that will suit the needs of one and all. Professional indemnity cover that you need depends on the specific nature of the services would be providing. For example, if you are an IT service provider, you need to calculate the amount of your business and accordingly devise the cover. When you do this, you have your entire business covered.

Professional Indemnity Insurance

Skipping errors to minimize professional losses

Doesn’t matter how much careful and professionally one remain but errors are bound to happen. Sometimes they can cost you a fortune and goodwill to your business. It is essential to protect your business from such losses and typically from litigation & claim made by dissatisfied clients. Professional Indemnity Insurance is increasing a great fold and the insurance providers have reduced their interest rates. Indemnity insurance is being encouraged though out the market. Recent professional indemnity cases has shown that contractors are widely becoming aware of possible litigations that can hamper their business a great deal and taking steps to make it null and void. Professional Indemnity has become almost next to compulsory for any business.

Indemnity Insurance

Why professional indemnity insurance is indispensable?

IT contractors are especially vulnerable, when undesirable situations that occur out of unmet deadlines are concerned. A brief look over our shoulders will bring plenty of such evidences where IT contractors and small business have vanished. Of these, contractors are the obvious losers… they are neither supported by funds to counter the legal aspects nor the professional expertise to decide what best can be done to inflict minimal losses. The situation is equally grim for startups.

The need for professional indemnity insurance had been felt quite long ago, but what lacked was anticipation. In fact, even today most contractors do not foresee the risks, and think their work is fine and so is their clientele. The dream breaks when an allegation is suddenly placed, sending them totally in disarray. The cost to defend a claim, the cost to cover a litigation, the cost to give a compensation, everything take their respective tolls on the contractor…and the obvious result is bankruptcy.

What can professional indemnity insurance protect you against?

• Libel & Slander
• False acknowledgment of authorship
• Copyright infringement
• Trademarks infringement
• Intellectual property right infringement
• Confidentiality infringement
• Breach of normal rights, and
• Negligent statement causing harm to clients

Professional Indemnity Insurance

Resources for Professional Indemnity Insurance -

1. Professional Indemnity Insurance
2. Professional Indemnity and why Freelancers need it
3. Professional Insurance
4. Professional indemnity
5. PI Insurance Resources
   

Professional Indemnity Insurance

Addressing the proper property insurance and risk management needs of building contractors developers, civil engineers, builders, etc., is something that very few specialists realize. This is where www.CoulsonPritchard.com differs from the rest. We focus on the actual needs of contractors and devise effectual contractor insurance policies. We have a handpicked team of construction industry professionals who believe in working closely with contractors to customize property programs. We offer specialized contractor insurance policies for residential as well as commercial contractors, which are noted for comprehensive coverage, built-in additional features, and more, making us one of the leading organizations offering contractor insurance policies.

Professional Indemnity

Professional indemnity insurance protects contractors or individuals working under contracts against legal liability towards their clients for injury, loss, or damage, arising from his own professional negligence or that of his employees. Most professionals carry professional indemnity cover, as compensation sought by clients can sometimes be high enough to land them down in deep trouble. If you are a contractor, you should certainly opt for a professional indemnity cover to protect your business against compensation sought by your clients in the event of any unforced error has resulted in substantial losses by the client. Professional indemnity insurance will also cover any legal costs.

Income Protection Insurance - What benefits should you expect?

Contractor Income Protection

In a life policy, there is a set sum assured which is paid if you die. In a private medical policy the insurer pays the costs of treatment up to selected limits. In a health cash policy the insurer pays out pre set sums. An income protection plan / policy is completely different... read more

Coulson Pritchard - Articles

Freelance Insurance & Contractor Mortgages Articles

We have recently launched our new article section which comprises of various articles on Contractor Financial Services, Contractor Mortgages, Freelance Insurance & Business Insurance subject. Currently we are listing with 10 articles that also includes information about contractor pension, Income protection schemes available to UK professionals, tips on choosing contractor bank account.

Contractor Mortgages - Is Self Certification Right for you?

Self Certified Mortgages

If you are self employed, a contractor or freelance professional, have irregular income, earn income from bonus or commission payments or have multiple jobs, you're one of many people in the UK who know they can afford a mortgage, but will likely encounter difficulty getting a standard mortgage. Fortunately specialist products are available designed to meet your needs.

In the last few years, there has been a proliferation of new mortgage products which have been developed to meet the needs of a wide range of borrowers, some of whom may have formerly been excluded from the mortgage market altogether because they could not fulfill conventional criteria for verifying their income... read more

UK Housing Market - What can contractors expect in 2007?

UK Housing Market

Making predictions can be a dangerous game and if there's one topic that divides opinion it is the property market.

Last year, many of Britain's housing market experts called only modest increases for 2006, of between 1% and 4%. But it wasn't long before the London-led property revival saw a raft of revised forecasts.

Similarly, armchair pundits who had suggested doom and gloom were left stranded by reports that prices were rising rapidly. The general consensus among the major house price reports was that prices ended up rising by an average of around 9% in 2006... read more

Self Employed Mortgage and Self Certification Mortgage

Self Employed Mortgage

You're self-employed and you want a mortgage. Be thankful this is 2007 and not 1986, when scorn and derision would likely have been the response from lenders to your request. But attitudes, influenced by mortgage competition, change, and with the introduction of the self-certification concept some 15 years ago, that pariah of responsible borrowing - the self-employed - is in from the financial cold... read more

Income Protection For Contractors

Contractor Income Protection

Most banks and building societies are tied to a single provider, so you just get their branded deal. Banks make a lot of money by selling various income protection products, with a mortgage or loan. A few deals are constructed in such a way that you cannot separate the finance and protection. Most deals offer you some cover, which tends to be priced on the high side, and may not suit your individual circumstances. Some even make you pay for it if you do not opt out, while others will suggest it is part of the overall deal. In practice, in the vast majority of cases contractors have the freedom to look elsewhere in the market for a cheaper and/ or more suitable insurance...read more

A Guide to the new pension tax regime for contractors

Contractor Pension

The Finance Act 2004/5 contained proposals to simplify pension legislation. As of the 6th April 2006 (known as A day) these proposals have taken effect. Whether you are just starting your career as a Contractor or you are a Freelance Specialist about to retire, you need to know how these changes could affect the way that you plan for your Retirement... read more

Tips on choosing a contractor bank account.

Contractor Banking

One of the earliest decisions you need to make when you start up in business as a contractor is which bank account to opt for.

Tempting as it may be to simply open a business account with your existing bank, you could be missing out on lower charges and higher interest on a balance in credit. Over the long term, you could be depriving your enterprise of a significant amount of money... read more

Checklist for Professional Indemnity Insurance

Indemnity insurance can be obtained by professionals on their own, or through groups, such as employers or associations. Legitimate professional indemnity insurance is offered only by a few service providers and your choice may vary according to the risk covered. Professional indemnity is an exceptional guard particularly for small business and contractors. Following are the main features that you should look for in a typical indemnity insurance policy:

* Libel and Slander
* Loss of documents
* For negligence or breach of a duty of care
* Infringement of intellectual property rights
* Dishonesty of employees
* Fidelity
* Unintentional breach of confidence
* Infringement of copyright and intellectual property rights
* Negligent misstatement or misrepresentation

Business insurance cover for freelance professionals and contractors of UK

Business Insurance

Freelancing is becoming an increasingly lucrative way of living. Thanks, to the changing industrial scenario where the spotlight is now on contracting out major portions of work for reasons whatsoever, sky is actually the limit for freelance contractors...READ MORE

IR35/Legal Expenses Insurance and its significance in the world of freelancing!

Legal Expenses Insurance

Ever since its inception, IR35 has brought about substantial changes in United Kingdom’s taxation history. The IR35 legislation has been intended towards increasing tax and National Insurance (NIC) from the service industry since the government views that such small limited companies are increasingly being used to disguise employment. To read more about IR35/Legal Expenses Insurance...CLICK HERE

Professional Indemnity Insurance and its significance in the world of freelancing!

Professional Indemnity Insurance

Professional Indemnity (PI) Insurance has become very vital among the contractors and freelance consultants. Every professional now prefers to carry a professional indemnity cover to forego the risk involved in selling the skills and services on contractual basis. To read more about Professional Indemnity Insurance (PI) Insurance...CLICK HERE

IT Contractors reaps the benefit of Insurance

IT Contractor Insurance

Information and communications technology requirement precede any other organizational requirement for proper functioning of organizational processes. To reap the benefits of IT, more and more organizations are seeking for active ways to incorporate IT in their processes. The obvious gainers of this situation are IT contractors. Today more and more organizations are relying on them for efficient functioning of the IT department.

However, there are situations when the desired result fails to be achieved, leading to significant losses being inflicted by the organization. To make matters worse, these losses are often passed down to contractors and compensations are sought, making IT contractors a vulnerable lot. IT contractors insurance takes care of this. If you are an IT contractor selling your skill, knowledge, or product, you should definitely consider seeking an insurance cover, because you never know where things might go wrong.

Coulson Pritchard Associates, a specialist in the field of insurance are insuring freelancers of UK since 1996. They offer affordable rates for various insurance scheme for e.g. £165 p.a. for Professional Indemnity (PI) Insurance and £112 p.a. for Combined Business Insurance.

Products for IT Contractors Insurance

1. Professional Indemnity (PI) Insurance
   
2. Combined Business Insurance
   • Public Liability – Limit of Indemnity £1 Million
   • Employers Liability – Limit of Indemnity £5 Million
   • Business Equipment – Sum insured £5000
   • Business Interruption – Sum insured £2500
     
3. Legal Expenses Insurances
   
4. Personal Accident & Travel Insurance
5. Health & Safety Insurance
   

Coulson Pritchard Associate

Coulson Pritchard Associate is a leading insurance solution and mortgage solution provider for freelance professionals of UK. Among various services that being offered by Coulson Pritchard, following are the prominent:

1. Professional Indemnity (PI) Insurance
   
   • IT Contractors
   • Design Engineers
   • Interim Managers
   • Business and Management Consultants
     
2. Financial Services
   • Contractor Income Protection (PHI)
     
   • Contractor Critical Illness
   • Contractor Life Cover
   • Contractor Pension Advice
   • ISA (Individual Saving Account)
     
3. IT Contractor Mortgages
   • Mainstream Mortgages for Contractors
   • Self-Certified Mortgages
   • Buy to Let Mortgages
   • Re Mortgages
4. IT Contractors Personal Accident, Sickness and Travel Insurance
5. Legal Expenses and IR35 Insurance
6. Business Bank Accounts