Professional indemnity insurance is also known as PI, professional liability, or indemnity insurance.
So, is professional indemnity insurance worth it?
Professional indemnity insurance not only provides the compensation required to rectify any mistakes in your work, but it also provides cover for defence costs in situations where the claim made by a client is unjustified. You may have complete confidence in the quality of your work and many years of experience, but any small business or contractor is vulnerable to a claim of negligence when your work fails to meet a client’s expectations and causes financial loss.
What would you do in a situation where a client sues you as a result of your work?
First instincts would usually be contact your solicitor, that’s if you have one. Unfortunately solicitors aren’t cheap, the costs can rack up quickly and be crippling to your business. But the financial costs are just the start, you also need to take into account lost business time and resource handling a disgruntled client which could have otherwise been used for more productive means.
A professional indemnity insurance policy will take that worry away. Providing you opt for a reputable insurer they should take the burden of dealing with the client dispute off your shoulders. They will also appoint either in-house claims solicitors to deal with the matter or appoint external solicitors on your behalf.
For more information about professional indemnity please contact us, or alternatively you can provide us with a few details about your business and get a quote.