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.