As a professional, you are responsible for the advice and recommendations you give out to your clients. If you give advice that leads to a loss of income or that results in reputation damage, then you could be liable to pay damages. This is where professional indemnity insurance comes into play. Having one of these policies could save your business, and prevent you from going bankrupt should one of your clients undertake legal action against you.
Who Needs This Type of PI Cover?
The types of professionals that might need this type of cover are typically ‘white collar’ consultants or contractors who give advice. They could include doctors, lawyers, consultants, teachers, builders and more.
How Do You Get Cover?
Once you’ve decided you need PI cover, you need to know where to go, and how much you should pay. Most insurance companies offer this type of insurance and some even have online ‘quote and bind’ services where you can purchase your insurance totally online without ever having to speak to anyone! However, the drawbacks of this are that you get an off-the-shelf product which may not suit your personal circumstances and may not cover you for all the activities that you undertake. This is where professional ‘insurance brokers’ can come in handy as they can tailor an insurance product to your exact requirements to ensure there are no loop-holes and that you are 100% covered. They can compare different products, and even negotiate on your behalf to get a better rate and lower overall premium.
Should You Get Several Insurance Quotes?
In short, yes! Like anything, the more options you have, the better educated you will be and the more likely you will make an informed and smart decision about which cover you should take out. There are companies like ACAY Insurance who can source you multiple professional indemnity insurance quotes based on the information you give them. It is recommended that you at get at least 2-3 quotes to make an informed decision and to give you the best chance at paying a lower premium for the most appropriate product.
How Long Are You Covered For?
The typical length of a PI Policies is for the length of you contract, or for a flat 12 month period.
If you give any sort of professional advice, you need to have professional indemnity insurance – it’s that simple. You could risk losing everything if you don’t and could end up bankrupt or involved in long drawn out legal proceedings. So be smart! Visit a few websites, speak to some insurance brokers, source yourself several insurance quotes and make sure you get an affordable premium which covers you for ALL of the activities and advice that you give!