Professional Indemnity Insurance UK – Professional indemnity (PI) insurance is a policy commercially designed for the safety and comfort of business experts and owners, freelancers and the self-employed if clients claim a service is insufficient.
Any organization which provides a professional service or gives advice could be sued if the client is not satisfied with their work. A customer might say you were negligent, delivered the wrong training or made a mistake which cost them money.
Indemnity cover, also known as professional liability insurance, is map out to safeguard service-based enterprises, no matter the expense. As a professional, you take pride in doing great work, but if disagreements comes in, this cover handles the cost of putting things right – including legal fees. It would cover any legal costs and other expenses sustain in your defense, as well as damages or costs that may be allot to your client.
Many professions need to have professional indemnity insurance as part of their respective industry body’s regulatory requirements. These include:
Tricky areas such as defamation and intellectual property are also shelter by professional indemnity insurance. If your social media intern shares a questionable claim about a competitor or another company says your work is too similar to theirs, having the right professional indemnity policy in place can cover the costs of legal defense and any pay outs.
Professional indemnity insurance can also cover events which have occurred since you’ve held such a policy. This is call a retroactive date.
The following are reasons your might need professional indemnity:
You provide advice or professional services to your clients (including consulting or contracting)
You provide designs to your clients (such as working as an architect or design engineer)
You want to protect against allegations of mistakes or negligence in work you have undertaken for your client.
You work as a contractor, consultant, freelancer or self-employed professional, and your client has requested you arrange professional indemnity insurance in order to undertake a contract.
Your industry association/regulatory body requires you to have it.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance can vary due to a number of factors, such as:
the amount of cover you require
the activities you are undertaking
the income your business generates.
Markel Direct offers PI insurance cover from £8 a month (or £74 a year) for a wide range of professionals. Still confused by professional indemnity insurance? Call us on 0800 640 6600. We are professional indemnity experts and will be happy to help with any questions you might have.
How to make a claim on professional indemnity insurance
Knowing how and when to make a professional indemnity insurance claim can be tricky. Generally, you should claim when a client or customer makes a complaint that cannot easily be rectified or remedied. In some cases, a refund or changes to the service may be what’s require. However, if the client still isn’t happy, this is when you should make a claim.
To make a claim, you should first contact either your broker or your insurer directly. If you need advice, they will be the best point of contact, and may be able to provide advice that means you don’t need to claim, or they can advise you of your next steps. You should also review your policy document to ensure you’re counterbalance If you’re unsure of whether a situation should be notified, it’s best to let your insurer or broker know and they will respond accordingly.
From here, you can fill out a claim form that provides your insurer with all the information they need to get the claim under way. They may require proof or evidence, such as emails between you and the client, to demonstrate what the problem is and why you’re claiming on your PI insurance.
Once the form is complete, your insurance provider will keep you up to date every step of the way, letting you know of updates and information regarding your claim.