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What does Professional Indemnity cover?

Architect And Tradesman Studying Building Plans

What does Professional Indemnity cover?

4th March 2021

If you provide professional advice or services to someone, and that service you provided was ill advised and the cause of them losing money – they could take legal action against you. Professional Indemnity insurance is designed to cover the legal costs or expenses you might incur from facing such a claim.

Give me an example

Let’s say you’re an electrician working for a shopkeeper on their new retail outlet. You’ve given the electrics the all clear – telling them it’s safe and compliant. But you missed something. It happens. The shop owner has to delay opening their shop. Plus, some of their stock has defrosted. Your client could make a claim for compensation.

Why do I need it?

It’s not a legal requirement to take out Professional Indemnity insurance, but the peace of mind which comes with knowing you could legally defend yourself, and cover the cost of a potential reward, is of great comfort to most tradespeople. It means your business and your livelihood would be safeguarded, and you can continue to do the job you love and pay the bills.

It’s also worth noting that there are some organisations and professional bodies who will only engage the services of a tradesperson with Professional Indemnity insurance. So, that’s another good reason to think about arranging a policy.

What level do I need?

The level of cover you choose is entirely down to your personal circumstances. That’s why it’s always good to speak to your insurance team and provide them with as much information as possible about you and your work. That way you can ensure you have the most appropriate cover for you.

Where do I begin?

When you run a small business, you suddenly become an accountant, HR, sales and marketing professional overnight. You’re having to wear many different hats. The extra things you have to deal with outside of your work can feel confusing and overwhelming.

If you’re considering getting your insurance in order, speaking to someone who has knowledge of your trade makes life a lot easier.

Get a quote online


Or call the Trade Direct Insurance team today on 0800 0280 380 for a quote. For more information, why not check out our page on Professional Indemnity cover.