To appreciate fully why you need professional indemnity insurance, consider for a moment the possible consequences of not being covered. Your reputation, your business, your livelihood could all be at risk. In short, everything you have worked to secure.
If you’re a freelancer, contractor or consultant – if you offer any kind of professional advice or service for a fee – you really do need professional indemnity insurance. Quite simply, it will protect you in the event that any mistake you make causes a financial loss to a client.
Still not convinced it’s for you? Think again. It really isn’t calling your professionalism into question to highlight the fact that we all make mistakes now and again, particularly when we’re struggling to meet a deadline. We’re all human. The problem is that even a seemingly trivial error - putting a wrong figure in a document or the wrong telephone number in an advertisement - can have serious consequences.
If the worst does happen and you’re sued, then professional indemnity insurance will cover your defence costs and, if the decision goes against you, the amount of any compensation payment awarded up to the limit of your policy. Wouldn’t you like to have that kind of peace of mind?
Your professional indemnity insurance policy should also cover the cost of putting right any mistakes you might have made. This is often the least painful way of sorting out a dispute but, of course, without professional indemnity, it could be financially painful for you if it means work you hadn’t allowed for.
And there are other good reasons for being covered. You may not have made the mistake in the first place. It may have been someone who works for you or a sub-contractor. Perhaps there was no mistake. Maybe the client just didn’t think that your professional services were as professional as they might have been. In a case like that, a dispute can all too easily end up in an expensive legal case.
Not a problem. Your professional indemnity insurance will cover you for all your legal fees - and, in case you hadn’t noticed, lawyers don’t work for nothing in this day and age.
So, there are plenty of very good reasons for protecting yourself with professional indemnity. But do remember that not all professional indemnity insurance policies are identical. To be certain you find the one that meets your professional needs, just call 03333 211403 or email nfo@professionalindemnityinsurance.co.uk today.
