Professional Indemnity Insurance Guide

Professional what?

If you’ve been asked to buy or recommended to have professional indemnity, but you’re still a little unclear about exactly how this insurance works to protect your business, you may appreciate this simple, easy to understand beginners guide written by leading specialist insurer Hiscox.

So what is Professional Indemnity insurance?

It’s the kind of insurance that protects your business from financially crippling and often reputation-damaging claims by dissatisfied clients. Because in this everything-by-yesterday world, even the most respectable companies can find themselves in dispute with a client over a mistake. Below we list some of the danger areas your business could be exposed to:

• Negligence: or breach of duty of care
• Intellectual property: unintentionally infringing on others’ copyrights, trademarks, broadcasting rights, any act of passing off
• Loss of documents/data: damaged, lost or stolen data and documents belonging to your clients
• Dishonesty: liability arising from the theft of your clients’ money

Professional Indemnity from Hiscox works in a number of ways:

1. It will cover you if you make a mistake in the professional services you have provided that leads to a dispute with a client. If the dispute becomes complicated and nasty, Hiscox can defend your claim - right through to the High Court, if necessary. Even if you lose, the policy will still cover you for any damages you then become liable for, subject to the level of cover your business is insured for.

2. The policy will also cover the cost of fixing any mistake on your part, thus avoiding a larger claim being made. Fixing a problem before it becomes an even bigger problem is simple common sense. Our approach helps all parties avoid wasting considerable time and resources on long and drawn-out litigation.

3. You are also protected if you lose or damage any clients’ documents in your care or if one of your employees are involved in the theft of a clients’ money.

Other benefits include:

• Direct access to specialist claims staff and advisors who understand your industry
• Access to specialist legal teams to defend a claim in court
• Avoiding large legal costs your business would otherwise have to pay for
• Protecting your reputation as well as the bottom line

No two businesses are the same and there is no single amount of cover that suits all. Nobody knows your business and the exposure it faces better than you. Our advice would always to buy as much cover as you can reasonably afford.

Often, your client will set a minimum limit of the indemnity they require. This can depend on the specific nature of the services you’ve been contracted to provide, or they could have a set limit for all their service providers. For example, many UK government departments will require their contractors and consultants to have at least £5 million of cover.

It’s also worth considering taking our retroactive cover for work that you’ve already completed before the policy commences. By doing this, you will have all bases covered. You will be asked whether you want retroactive cover when getting a quote on our website.

Why Hiscox?

Some other insurers offer a one-size-fits-all Professional Indemnity insurance, regardless of the profession involved. We don’t. Our strengths include:

• Leading specialist insurer with industry specific policies
• Long history of creating unique insurance solutions
• Quick and easy – get a quote and buy online with same day cover
• Add-on policies including contents, computer equipment & Public Liability
• Expert legally trained claims team
• Easy payment options including interest free monthly direct debit

• Visit Hiscox for more information or to get an immediate Professional Indemnity Quote.