Don’t already know how important Professional Indemnity insurance is? Read this blog first – we’ll wait here.
All caught up and wondering what’s next? Perfect. Let’s get started.
Fact is, insurance isn’t a one-size-fits-all situation. You need the cover that best suits you and allows you room to grow. That’s why we dig a little deeper…
What exactly does Professional Indemnity cover me from?
Professional Indemnity isn’t a legal requirement, but given the amount it protects you from, it should be treated as equally important. Aside from the obvious errors, there are plenty of things clients can accuse you of, like:
- Negligence
- Omissions
- Civil liability
- Defamation
- Breach of duty
- Breach of copyright
- Breach of confidence
- Lost or damaged documents
Obviously all these could be quite damaging to your reputation. Lost documents could suggest you're incapable of looking after customers’ personal data too. It’s why having the support of Professional Indemnity insurance behind you is essential for scale-ups looking to transition to industry contenders.
How much does it cost?
Most policies start at around £500. But, as with any insurance, it all depends on the industry you operate in. If the risk level is low, and the service you offer your clients is unlikely to cause any major disruption, your premiums will be lower. And the same is true if those clients are relatively small.
With the bigger clients or more disruptive risk, though, you might be looking to pay somewhere in the thousands. And it’s for this reason that you might find some of your more significant accounts have contracts that require a certain level of Professional Indemnity.
However, in these instances it’s always worth a broker assessing what your client is requesting. It may be that this is unnecessary and could be negotiated – otherwise you’re overinsured and overpaying.
What questions will I be asked?
Brokers and some insurers will ask the kind of questions that determine the type of service you provide and the impact it has on your clients’ organisations. Things like:
1. Are you offering a professional service?
2. Do you give advice to clients?
3. Do you handle a client’s data or sensitive information?
4. Could you damage a client’s property?
From there, it’s just a case of assessing the level of damage that a claim could potentially cause. But, obviously, that can change as you grow. And only the best insurance providers will try to pair you with policies that actually cater to your ambition.
Where should I get it?
From a broker who understands that scale-ups need more than off-the-shelf policies. Face it, you’re growing. You need cover that doesn’t just protect you now, but the business you want to be in a few months’ time and maybe even years into the future. And you need a partner that can offer advice and recommendations, unlike an online insurer.
Capsule is that broker. Our aim is to make sure you’re never underinsured or paying more than you need to, and that your insurance programme supports whatever forward movements you make. To find out how, contact us.