Here’s why you definitely need professional indemnity insurance
Professional indemnity insurance hit news headlines earlier this month following the announcement of a new state-backed scheme to offer cover for clinical negligence claims to GPs working for the NHS. This cover, which has previously been available to doctors practising in hospitals, will be extended to GPs from April this year.
Now, we know what you’re thinking. “Well, my work isn’t life or death. I’m not helping clients through cancer or diagnosing depression or managing diabetes.” Maybe not. But if you are offering advice or services as a contractor or freelancer, you need professional indemnity insurance. Here’s why.
Mistakes can happen on even the smallest of jobs. A missed measurement in a blueprint that leads to the wrong materials being ordered and delays a project. A typo in a leaflet that you produced for a client sending their customers to the wrong web address. A data breach which exposes client data online.
These mistakes can cost your clients time and money, and they are going to want compensation. Legal fees, compensation costs, the recovery of data – all of these can mount up into the tens or even hundreds of thousands. And we don’t know many contractors who have the money in their back pocket to pay out such large amounts. That’s where professional indemnity cover comes in. Kingsbridge’s package covers compensation and legal costs (for yourself and for the other party if you are found to be negligent). It will also meet the costs of repairing or making good any damage, such as redoing work. Cover with Kingsbridge extends up to £1 million per claim and is unlimited in the aggregate.
Sometimes, you may not even be at fault – but if the client thinks that you are, having professional indemnity insurance means that your cover will meet the cost of defending against any claim. Even faultless contractors can find themselves in need of cover!
We know how important peace of mind is, so Kingsbridge’s policy includes the retroactive cover as standard. This means that when you take out their policy, you are protected against claims against work that you completed in the last six years. So, if an issue arises with a past job, you know you would be covered.
However, it’s also worth bearing in mind that professional indemnity insurance operates on a “claims made” basis. This means that you are only covered against claims that are made against you during the term of the policy. If for any reason your policy lapses, you will cease to be protected. This is why we recommend that you keep your insurance active even when you are out of contract, in case an issue arises with a past job.
Professional indemnity insurance is a key part of Kingsbridge’s standard, comprehensive package for contractors and freelancers. As well as protecting you from the circumstances described above, it offers cover against claims of libel, slander and breach of intellectual property. And clients like to see that you have it – in fact, it is a prerequisite of most contracts that you hold adequate professional indemnity insurance. If your business is missing this vital cover, don’t delay – visit the Kingsbridge website today for an instant quote.
Or, call one of our Relationship Managers on 0207 118 2400 to talk through how this could benefit you.
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