What does Professional Indemnity cover?
04 March 2021If 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.
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.
Trade Direct is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent broker providing a wide range of policies to tradesmen and construction workers.
This note is not intended to give legal or financial advice, and, accordingly, it should not be relied upon for such or regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this note we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained herein. You should not act upon information in this bulletin nor determine not to act, without first seeking specific legal and/or specialist advice. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide herein and exclude liability for the content to fullest extent permitted by law.