PI Insurance
Now you run your own
contracting business, you’ll have found that your approach to managing your risks has changed. As an employee, did you ever think about what might happen if you made an error that cost your employer, or its customers, large sums of money? You probably did, but in the context of what that mistake might do to your career prospects and future pay rises.
But if you are contracting without
contractor professional indemnity insurance, significant financial loss becomes a very real risk. If you make a mistake on a project, or are accused of negligence by a client, the responsibility is your company’s and yours as a director. Defending a claim without
contractor professional indemnity insurance in place could cost huge sums just in legal bills, not including the cost of any payouts to the client.
Manage risk with Contractor Professional Indemnity Insurance
Contractor professional indemnity insurance is designed to manage the risk of your clients suing you for negligence. If the worst does happen and you are accused of making a mistake or being negligent, a
contractor professional indemnity insurance
policy will cover both the costs of
defending the claim. Your
contractor professional indemnity insurance will also cover damages for which you are liable, up to the policy limit, if a successful defence cannot be made.
The protection provided by
contractor professional indemnity insurance will give you peace of mind knowing that you are covered in the event that you make a genuine
professional error or
omission in your work. Additionally,
contractor professional indemnity insurance will give you confidence to know that you can defend a more spurious claim against you without having to fund expensive legal action yourself.
What you should look for in Contractor Professional Indemnity Insurance
The key features of your
contractor professional indemnity insurance are the level of cover, the excess you may have to pay on any claims, the dates during which the cover applies, and any geographical limitations to the cover.
Although the risk of client
making a claim is generally low for most
contractors, the cost of a single claim can lead to serious financial pain. Taking out a
contractor professional indemnity insurance
policy is not only commercially prudent, but most agencies and clients will also insist you have up-to-date
contractor professional indemnity insurance before they award you a contract.