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