Yes, if you are in the business of selling your knowledge and expertise to others who are ready to pay a price. Accountants, solicitors & architects are required by law to have professional indemnity insurance. Doctors daren't practise without it. Anyone who is in the business of giving professional advice or consultancy in any capacity, who could be sued for making an error or mistake needs it.

Professionals are only human and errors & mistakes happen, even in the best run businesses. Unfortunately, in todays litigious society people are quick to point the finger when things go wrong, here are a few claims examples;

Uncompliant software leads to a £750,000 claim
An IT consultancy implemented a customer management software package. It was alleged the software failed to comply with agreed functionality. A claim of £750,000 was made to cover the repayment of the cost of the original purchase & subsequent installation & development.

Website crash leads to a £120,000 claim
A computer consultant developing a retail website made a coding error, causing the website to crash. During the downtime the client claimed lost sales amounting to £120,000.

Engineering error leads to a £400,000 claim
Electrical engineers were allegedly negligent in their design of heating and lighting systems for an office building. Substantial remedial work was required, resulting in a claim for £400,000.

Professional indemnity insurance provides protection for negligent advice or a service provided by you, and is designed to safeguard your business against claims made by disgruntled clients for any resulting financial loss or damage to their reputation. Investing in professional liability insurance cover means that not only will your legal costs be met, but should a claim be proven, also the cost of meeting any compensation payments, up to an agreed limit. Professional indemnity will also cover you even if the allegations made against you are false.

Without a professional indemnity policy in place, freelancers are open to unlimited personal liability. Simply put, your personal wealth and assets could be at risk if you have to fund your own legal defence.