Indemnity Insurance

Stay Ahead, Win More Contracts, Invest In Professional Indemnity Insurance 

If you haven’t noticed it already, maybe you haven’t been promoting your business as widely as you could. The fact is that more and more organisations in the private, public and not-for-profit sectors are insisting that any consultants they engage are fully covered by professional indemnity insurance. Indeed, they will sometimes specify the amount of cover the consultant should have.

So for that reason alone, pi insurance should most certainly be viewed as an investment rather than a burdensome expense. Your professional indemnity could be a passport to pitch lists from which you might otherwise be excluded.

But why should organisations that use freelance services be so insistent on indemnity insurance?

The simple answer is that the organisation wants to be certain that if you fail in your duty of care (a technical term for making a mistake and, let’s be honest, everyone makes mistakes occasionally) then the money will be there to put that mistake right and compensate for any lost revenue and/or additional costs.

And who can blame them? Particularly in today’s complex business world where large projects often involve a network of interrelated contractual relationships and any individual business might be both a client and a supplier. Given how quickly claims and counter-claims can fly if something does go wrong, it’s hardly surprising that everyone want to ensure that every base is covered.

Even in situations where potential clients don’t make it a contractual requirement, your professional indemnity insurance can still work in your favour. It stands as a mark of your professionalism, it shows that you’ve thought about what you do, it indicates that your business is a solid and reputable one.

So why not follow the link to add professional indemnity insurance to your marketing mix.

Professional Indemnity: Always Check The Exclusions!

You know what they say, always read the small print. Because, as with all insurance policies, professional indemnity comes with exclusions.

Some are standard, the kind of thing you’d expect to find with any insurance policy, such as risks already covered elsewhere. But others you need to think about more seriously.

For example, if you’re currently involved in any form of professional dispute that could lead to a claim, you’ll need to declare it before taking out a new pi insurance policy. In a similar way to a health insurance policy which probably won’t provide cover for any pre-existing medical condition, so a professional indemnity policy will almost certainly exclude any specific risk that was known about at the time the policy was taken out.

You should also be aware of possible geographical or territorial exclusions. The likelihood of a claim being made, and the size of any claim, can be significantly higher in some countries than others – the United States being an obvious example. So you should definitely make sure that any professional indemnity insurance you’re considering doesn’t exclude specific places where you’re likely to do business.

Some pi insurance policies offer retroactive cover (i.e. cover for claims arising from work done in the past) as standard but other policies may exclude it. Once again, it’s important to check.

And when thinking about exclusions, it’s a good idea to think about the amount of cover you’re taking out. It might seem like an obvious point but it’s easy to overlook the fact that every professional indemnity policy will exclude the amount of any claim above the limit of the cover specified.

The conclusion has to be that while the small print may seem boring, you could live to regret not checking the exclusions. But if you want some help on finding the professional indemnity policy that meets your needs exactly, all you have to do is call 0870 752 5455 or email info@professionalindemnityinsurance.co.uk.

PROFESSIONAL INDEMNITY - As A Freelance Consultant Do I Need It?

 Do you provide professional services for clients? Do you offer professional advice to clients? If the answer to either or both of the above is ‘yes’ then yes, you do need professional indemnity cover.

The big point to remember here is that, as a professional, you can be held liable not just for what you do but also for the consequences of what you do. And if those consequences happen to include a large financial loss for a client, then in this litigious-happy age, there is a very real possibility that you will be sued – and sued for the full extent of that loss.

Put yourself in these consultants’ shoes and imagine how they’d be feeling without any professional indemnity:

A consulting engineer makes a calculation error that leads to a delay in a £multi-million construction project. He could be held liable for the full cost of the delay, not simply for the cost of correcting his mistake.

During a system reconfiguration, an IT consultant accidentally erases a critical database that can’t be recovered. She could be liable for the entire cost of re-compiling all the lost data from scratch.

A marketing consultant inserts the wrong contact details in a client’s advertisement. He could be liable for the full cost of placing the advertisement and, if it was time-critical, the revenue from any lost sales.

As you can see, these are simple mistakes, the types of mistake we can all make if we’re under pressure, if we’re interrupted while we’re working, or even if we’re just having a bad day. But the costs of these mistakes could run into thousands, tens of thousands, even hundreds of thousands of pounds.

Not something your rainy day fund is likely to run to.

The good news is that despite what many consultants still think, professional indemnity insurance is no longer prohibitively expensive. On the contrary, it is highly affordable. As you’ll discover if you follow the link to get your professional indemnity quote.

PROFESSIONAL INDEMNITY QUOTES: Online Or On The High Street?

Where’s the best place to go for your professional indemnity quote?

We all know that the explosion of the internet has seen a downward pressure on insurance premiums across the board. And it’s not difficult to see why. It’s much cheaper to launch and maintain a website than it is to open and run a bricks and mortar High Street office.

So there would appear to be no contest. You’ll find the cheapest professional indemnity quotes online.

But are you really being offered the same product? Are you really going to get the same level of service?

Yes, you certainly can. (Even if you may find the odd rogue broker online, there’re fairly easy to spot.)

And the reason is that, these days, online providers have to compete as hard as High Street brokers ever had to. They know only too well how easy it is for you to shop around.

So not only can you expect to find a cheap professional indemnity insurance quote, you can also expect to find A-rated insurance company underwriting, free extras - such as retroactive cover - within the advertised premium price, a fast and efficient claims handing service, and should you need it, real professional expertise at the end of the phone (and not just a knowledge of insurance but an understanding of your industry too).

And, of course, you’ll benefit from the sheer convenience of being able to organise your insurance, instantly, from the comfort of your home or office.

As you’ll discover if you follow the link to find your professional indemnity quote.

CHEAP PROFESSIONAL INDEMNITY INSURANCE: How Much Should I Pay?

 The easy answer is ‘no more than you have to’. But before you rush into buying the first cheap professional indemnity insurance you find, it pays to do a little research
and make sure you’re comparing like with like. Which is not always as straightforward as it might seem.

Basically, the premiums people are charged depend on two sets of factors relating to the individual on the one hand and the broker on the other.

It’s a fact that some professions are viewed as more risky than others. So pi insurance for a structural engineer or an environmental consultant, even cheap pi insurance, is likely to be rather more expensive than it is for a graphic designer or a marketing consultant.

And rates will also vary depending on the size of your business and the territories in which you do business. So, if you run a consultancy with a high turnover and you regularly undertake work in, say, the USA where claims tend to be larger and more frequent, you will almost certainly have to pay more than a single professional who only ever works in the UK for UK clients.

Just as no two professionals are the same, no two brokers are either. And your apparently cheap professional indemnity may not turn out to have been such a bargain if the broker in question turns out to have been underwriting his business with insurance companies that can’t, or won’t, pay out in the event of a claim.

You should also make sure you’re clear about what the broker does and doesn’t include as standard. For example, some brokers offer retroactive cover within the price whilst others will charge for it on top of the advertised premium figure.

And don’t forget to look at the policy’s excess. What appears to be cheap pi insurance may turn out to be very expensive if you end up having to pay a very high excess in the event of a claim.

As you can see, there are a number of things to take into account when asking yourself how much you should actually pay if you’re in the market for cheap professional indemnity insurance. But a good place to start is right here.

WHAT TO LOOK OUT FOR WHEN LOOKING FOR PROFESSIONAL INDEMNITY INSURANCE

 You’re in the market for a professional indemnity insurance policy. But with so much choice, how do you find the policy that is right for you? What are the things to look out for?

For a start, there’s the expertise of the broker. Some companies, the ones that don’t really understand pi insurance, adopt a ‘one size fits all’ approach and will want to sell you an off-the-shelf product. But no two businesses are the same. So you need to deal with a broker whose staff have a knowledge of your industry and can provide you with the best advice.

Having said that, you still want to arrange your policy with the minimum of fuss. You don’t want to have to fill out endless forms and then wait for weeks to receive your policy documentation. So look for a broker who offers a combination of expertise and streamlined administrative processes.

Look out too for exclusions and extras. For example, whether you’re renewing your professional indemnity or taking out a policy for the first time, you will almost certainly want retroactive cover. Remember, there can be a significant time lag between an error or omission on your part and the consequences coming to light. Which makes it very important that you’re covered for what you have done and not just for what you might do. Is retroactive cover included in the policy you’re being offered? If so, is it included in the price or are you going to have to pay extra for it?

And on the question of price, of course, all things being equal, you’re going to choose the most competitive quote. But don’t forget to check which insurance company your broker is going to use to underwrite your policy. There’s no point in having any indemnity insurance at all if the insurer doesn’t have the resources to pay out in the event of a claim. So make sure your broker only deals with insurance companies that are robust and financially sound.

And talking of claims, check the claims procedure that the broker operates. Is it going to be a straightforward process or are you going to be made to jump through hoops?

Professional Indemnity Insurance - Why Is Retroactive Cover Important?

 Whether you’re a freelancer, a self-employed consultant or a professional practice firm, you’re probably already aware of the need for professional indemnity insurance, or pi insurance as it is often referred to. It’s designed to provide you with financial protection if a client makes a claim against you, alleging loss or damage as a result of your negligence.

So you might be thinking that if you take out some professional indemnity cover today, everything will be alright.

That depends.

Because there can often be a significant time lag between a professional mistake being made and the consequences of that mistake being felt.

For example, a consultant engineer might design a roof which he claims will withstand the weight of a certain amount of snow. But it’s only when that amount of snow actually falls that it becomes apparent that he made an error in his calculations.

Or take the case of an IT contractor who designs a system with the flexibility, so she states, to accommodate the client’s future expansion. Again, it’s only when the client’s business does expand, and the number of system users grows, that it turns out the system wasn’t that flexible after all.

In either case (or, indeed, in any similar case relevant to your particular profession) the simple fact of having a pi insurance policy in place at the time the mistake came to light, would not, in itself, provide any protection. The policy would need to provide you with cover for when the mistake was actually made.

But is it possible to insure yourself against the consequences of something you might already have done?

Fortunately, it is. By ensuring that retroactive cover is included in any professional indemnity policy you take out. And, indeed, only by doing so will you obtain the true peace of mind that professional indemnity insurance is designed to provide.

That’s why retroactive cover is so important. To find out more, call 0870 752 5455 or email info@professionalindemnityinsurance.co.uk.

PI Insurance: Helping Social Workers Steer Clear Of Litigation

Healthcare professionals, such as social workers, are notoriously prone to finding themselves in court on charges of negligence and the like – either real or falsified. One case involved a social worker taken to court over whether a duty of care was owed to parents who had wrongly been accused of child abuse. It was held that health professionals’ only duty of care in regard to those suspected of child abuse was to act in good faith.

The cost of mounting a defence for a professional liability claim can be extremely high. As a professional social worker, a person will be seen as an expert in their field and is open to action if a mistake is made in delivering advice.

Professional indemnity insurance protects professional from claims resulting from professional advice or services. Policies should include support and advice, and cover reasonable costs incurred in the defence or settlement of a claim for professional indemnity, public liability, cases of libel and slander, and inappropriate release of confidential information.

Social workers should ensure that they have cover both at the time of an event and when the claim is made. This is because it will not be possible to receive a legal claim from a client regarding an event which happened a year ago, and then take out a professional indemnity insurance policy and successfully get cover from it for this past event.

It will also not be possible to get protection on any legal claim made after the policy is taken out as a result of an event which occurred before the life of the policy began. However, some providers will supply retroactive cover which will protect against subsequent claims relating to events before the start of a policy.

Legal action from a client is a disruptive and distressing event and can be financially disastrous for an individuals. Professional indemnity insurance can give social workers the peace of mind that is so vital to them being able to carry out their job properly.

HOW MUCH PROFESSIONAL INDEMNITY COVER SHOULD A FREELANCER HAVE?

How much professional indemnity insurance cover should you have? Depending on who you ask, don’t be surprised if the answers you receive range from “how long is a piece of string?” to “as much as you can afford”. Because the simple answer is that there isn’t a simple answer.

It’s a cliché but no two businesses are the same. And where indemnity insurance is concerned, what really matters is not the value of the work you do but the potential consequences of any mistake you might make.

Some people naively imagine that their liability is limited to the amount of their invoice – imagining, perhaps, that if something goes seriously wrong, it will be sufficient simply to waive their fee. They couldn’t be more mistaken. 

Imagine, for example, that you had developed an e-commerce website for a client and it crashes. In the few days it might take you to identify the problem and then implement and test a solution, the client may well have suffered many times the value of your fee in lost sales.

Or suppose that you inadvertently revealed some commercially sensitive information resulting in serious damage to a client’s reputation and a substantial loss of business.

In cases like these - and they do happen - you will need sufficient PI insurance cover to pay some very large legal bills and, quite possibly, an even larger compensation award. Claims running to six and seven figures are by no means unheard of.

It’s also important to check whether your policy limit applies to each and every claim made or to an aggregate of claims made over a period of time. If the latter, any claim you do make will effectively reduce the amount of cover you then have. And remember, if you’re underinsured - if you have some professional indemnity cover but not enough - you’ll be personally responsible for making up the difference.

The critical point is to deal with a broker who has a specialised understanding of professional indemnity insurance. Be open and honest about what you do and what could theoretically go wrong. And don’t be surprised if a figure of £1m or even £2m is suggested.

To find out more about the amount of PI insurance cover you need, call 0870 752 5455 or email info@professionalindemnityinsurance.co.uk.

Professional Indemnity Insurance: Blame the IT guy

With many businesses having their very foundations built upon an intangible IT infrastructure, it’s perhaps not surprising that when things go wrong it’s the IT consultant who gets the blame pinned on them.

One such case involved the installation of a booking and accounting system at a hotel. The hotel in question threatened to make a significant claim unless the IT consultant refunded them for the cost of the software and paid significant damages. It was ultimately discovered that the complaint was simply a matter of hotel staff not understanding how to use the system.

Regardless of how skilled the IT consultant may be, the responsibility they carry means that if a problem occurs they can quite easily be dragged into court to defend themselves. This isn’t the cheapest of activities, and certainly not good for business.

Due to the wide-ranging tasks covered by IT consultants, there are a large number of potential problematic areas for which a client may seek recompense. There are numerous cases on which to ponder.

In one, a computer system that an IT Consultant had designed and installed was found to have been unable to cope with the required number of users. The compensation awarded against him was £750,000.

Yet another case involved a self-employed technician who had agreed to perform services for a client, including making a back-up of their hard disks. In the course of producing the back-up, the IT worker accidentally overwrote all of the data on the hard drives belonging to his client.

Another IT consultant administered the back office of a finance house. Unfortunately, a hole appeared in the reconciliations and the finance house made a claim resulting in a payment of £300,000.

The simple solution to these horrifying and very real possibilities is to take out a professional indemnity insurance policy. This type of insurance offers protection from the consequences of being sued for damages by disgruntled clients if they have suffered financial loss as a result of an IT consultant’s professional services or advice.

PROFESSIONAL INDEMNITY INSURANCE OVERVIEW: Yes, It Does Apply To You

 Essentially, professional indemnity insurance - sometimes referred to as pi insurance - protects individuals and professional service companies against any claim for damages made by dissatisfied clients.

“Well, that doesn’t apply to me”, you may be thinking. Never mind ensuring that they’re merely satisfied, you pride yourself on exceeding your clients’ expectations. You may even have a website emblazoned with glowing testimonials.

But even if that is true, it need only take one small mistake - one small misunderstanding - in relation to just one client for you to find yourself on the wrong end of a lawsuit.

Imagine, for example, the case of a photographer who accidentally deletes the wrong files (or rather, the right files) after a big budget shoot. Or that of a technical author who uses ambiguous wording for a critical step in an instruction manual. Or that of an IT consultant who configures a system based on an incorrect assumption about the number of users.

Mistakes, misunderstandings like these – which, let’s be honest, we’re all capable of making occasionally - can lead to serious financial losses that can in turn lead to serious legal actions.

With the right professional indemnity in place, you’ll be covered for the cost of any remedial work required, any legal bills incurred and any compensation payments awarded. But without indemnity insurance, you could find your business, your livelihood, your whole financial future threatened. And don’t assume this is scaremongering. Claims of this nature sometimes run to six or even seven figures.

Perhaps you’re still thinking that all you need to do is to be extra careful in future. Not good enough. There can often be a significant time delay between cause and consequence, mistake and legal claim. So being careful tomorrow, won’t protect you from the consequences of what you might have done yesterday.

But with professional indemnity insurance, provided it includes retroactive cover, you will be.

And, in addition to mistakes and misunderstandings, pi insurance will also cover you against unintentional breach of copyright, unintentional breach of confidence and unintentional libel, slander and defamation.

You really shouldn’t be without it, should you?

Simply follow the link for the peace of mind that professional indemnity insurance can bring.

Who Is Indemnity Insurance for?

In the bad old days, it was only drunken doctors, ineffective engineers and insubstantial architects that felt the sting of expensive law suits. Nowadays though, litigation is in the air and the changed definition of freelance professionals means that professional indemnity insurance has unfortunately become a must for them too.

Basically, professional indemnity insurance is needed by anyone who is responsible for offering professional advice and services others. As this covers most freelancers’ work, professional indemnity insurance is an absolute must for those operating in this capacity. 

Professional indemnity insurance is a type of insurance which is designed to protect professionals from claims made against them by clients.  If, for example, a copywriter is employed by a large advertising firm and is then found to have plagiarized a rival firm’s work, the copywriter’s client is liable to get sued.

In turn, the copywriter’s client will seek compensation from the copywriter for damages incurred. Professional indemnity insurance would protect the copywriter and help him pay for the legal costs.

Whatever field the freelancer works in - whether it’s as an artist, programmer, writer or consultant – they should make sure that they read their policy to find out exactly how much fees and legal costs will be covered. The amount needed will depend on the potentially risky nature of the business carried out.

Each profession and professional has slightly different needs, so it is a good idea to seek an insurance specialist to discuss whether or not a policy is needed, how large the policy should be, and what types of situations the policy should cover. A good insurance professional will not be afraid to tell a freelance contractor that they need only take out limited professional indemnity insurance.

In a professional capacity, most clients that a freelancer will encounter are fully aware that pursuing a claim against them could be a lucrative option if they feel that the services provided have not been up to scratch. Rather than hoping things might change, the professional freelancer should ensure that they are covered by professional indemnity insurance.

BEING SUED ISN’T SEXY

Why Freelancers Need Professional Indemnity Insurance


There’s a thrill to being a freelancer.

It marks you out as an individual, one of the brave few who’s actually had the courage to kiss goodbye to ‘9 to 5’. You’re an expert in your field, your own boss - if you’re good enough, you can even pick and choose the work you do. Being freelance is sexy.

But being sued isn’t. It could ruin you, your business and the freedom you’ve worked so hard to build up. And it happens.

The business world is becoming an evermore litigious place – all too often, claim follows blame. And if something goes wrong, who’s the easiest person to blame? That’s right. You, the once-sexy-now-hapless freelancer. 

That’s why, whatever your profession, you really do need the essential protection – and the peace of mind – that professional indemnity insurance brings.

For some professions, it’s a legal requirement to have this kind of cover, or at least standard practice. For others, however, it’s viewed as something of an optional extra.

But imagine you’re an IT contractor and you misread some critical requirement in the spec for a system you’re designing...

Or a graphic designer or copywriter and you use the wrong telephone number in an advertisement you’re creating...

Or a business adviser, management consultant or marketing guru and you inadvertently reveal, to the wrong person, some confidential information you’ve been given...

Mistakes like these - and there are many, many other examples - can lead to huge financial losses (thousands, even millions of pounds in some cases) and/or serious damage to reputations. And however good your relationship with your favourite client might be, if it happens to them and they can blame you – or rather, if their lawyers can blame you – they will.

Remember, we all make mistakes occasionally, particularly if under pressure. But with professional indemnity insurance, you can ensure that it’s only temporary embarrassment you suffer. Not the loss of everything you’ve worked for

IT Contractors Insurance: Code Up To A Secure Future!

As an IT Contractor you are considered to be an 'expert' in your field...someone who posseses in demand technical skills, for which clients are prepared to pay a high price. In return, client's expect projects to be delivered on time and on budget....and error free. 

But what would happen if a client discovered you had accidentally programmed some bad code, causing an ecommerce system to fail? Or, if it was found the new accounts system you implemented could not meet business requirements? Or, if an employee trips over the network communication cabling you are installing and suffers bodily injury? Remember as a professional you are legally liable for any mistakes or for causing property damage / personal injury during the course of your contract.

The best way to protect yourself against risks like these is to obtain IT Contractors Insurance. If things go wrong, it will make sure you don't have to suffer the financial consequences of negligent actions. An IT contractors insurance policy will cover any legal costs if a negligence claim is brought against you PLUS compensation payments if the court thinks you are liable for damages. With litigation going north, it makes commercial sense for IT contractors to have cover in place. Especially as most end users and recruitment agencies now make it a mandatory contractual condition.

At professionalindemnityinsurance.co.uk we use over 20 years of experience to provide the most comprehensive cover in the industry. Underwritten by Royal & Sun Alliance, we insure all types of IT contractors from analyst programmers and website designers to security consultants and project managers. With prices starting from just £165 per annum, its a small price to pay for complete peace of mind.

 Our IT contractors insurance policy includes the following cover:

Professional Indemnity Insurance: Protects against claims of negligence, breach of contract, loss of data or documents and claims for dishonesty

Public & Employers Liability Insurance: Public liability cover will help you in case of third party claims when someone is injured or there is property damage whilst you are carrying out work
Employers liability insurance covers your employees or you in case of any accidental injuries or sudden death on or off the work site

Professional Indemnity Insurance: Immunise Your Business From Costly Mistakes!

As a freelance professional, you are paid handsomely to add value to organizations through the application of skills, expertise and knowledge.

The rewards and recognition attached with freelancing also bring along great contractual responsibilities and a number of business risks. One act of negligence, error or omission in fulfilling the terms of your contract could lead to a client suffering financial loss and suing you for damages. It doesn't matter how diligent or experienced you are - no human being is immune from making mistakes!

Being involved in a negligence lawsuit is stressful and can prove to be a huge burden on one's financial resources. The legal fees's and compensation payments (if you are held liable) can run into hundreds of thousands of pounds depending on the nature of the claim. So its imperative you have adequate professional indemnity insurance to prevent your business being wiped out. Remember, as a director you cannot hide behind the veil of incorporation if a negligence claim is made against you....the courts can also chase your personal assets!

We at ProfessionalIndemnityInsurance.Co.Uk are specialists in providing comprehensive professional indemnity insurance cover to small businesses and freelance consultants. In partnership with Royal & Sun Alliance we have developed tailored policies for over 100 trades and professions at very competitive rates. So if your unfortunate enough to cut some bad code, publish an incorrect set of management accounts or provide bad HR advice you can trust our professional indemnity policies to protect you, your reputation and your future.

If things go pear shaped our pi insurance policies will not only pay the legal fee's required for you to defend your reputation, they will also cover any compensation payments for damages caused by your negligent actions. (up to policy limits of course). A key feature of our policies is that they offer free backdated cover to protect you against claims from past projects. They also cover the actions of any sub-contractors you might employ. With premiums starting from just £165 per annum, why not get a cheap professional indemnity insurance quote today and immunise your business from the threat of mistakes!

Applying for professional indemnity cover from us is quick and hassle free. In fact you can get insured instantly, through this website, by following a few easy steps. Our friendly team of advisors are also on hand Monday-Friday 9.00am-5.00pm in case you have any questions. Please call them on 0870 752 5455 or email info@professionalindemnityinsurance.co.uk