Contractors’ Professional Indemnity Insurance
Why compare Contractors Professional Indemnity insurance with Viking Direct Insurance Services?
- Data protection & copyright breaches
- Directors & Officers Insurance
- Public & Employers Liability Insurance
- Breach of confidentiality & defamation cover
- Fast quotes & email documentation
Professional Indemnity Insurance for contractors explained
Contractors work in a number of sectors – you may work as an engineer in the construction industry or design security software in the IT sector. And while specific expertise may vary from one sector to another, as a consultant you offer professional knowledge and advice.
And while you may do so in good faith, things can go wrong. If a third party – a disgruntled client, for example – were to make allegations that the advice you provided was in some way wrong, for example through an error or omission, the damage to your business could be significant.
Firstly, you would be faced with significant legal costs in defending the claim. Those costs can soon mount up, and will do, whether you are guilty or not. Consultants Professional Indemnity Insurance can pay out for your legal costs.
Secondly, in the event that a court later awards a settlement against you, a Consultants Professional Indemnity Insurance policy could cover the amount due.
The precise circumstances around a claim can vary significantly, and will typically reflect the unique exposures that consultants face in different sectors.
How much Consultants Professional Indemnity Insurance should I take out?
The amount of cover (or indemnity limit, meaning the most amount that the policy will pay in the event of a claim) that you should take out when buying consultants Professional Indemnity Insurance needs to be carefully considered.
In some cases, a main contractor or end client may stipulate what value of Professional Indemnity insurance you should have as a contractual condition of your work with them. Cover can provide as little as £50,000 of protection, or as much as £10m. The three key factors to consider are:
- The value of the contract(s) that you are undertaking as well as the size of the company that you will be working for
- The potential legal costs that you might run up during a defence
- The maximum compensation value that could be awarded against you in the event that something did go wrong.
If you’re really not sure how much you need, speak to an advisor. They will be able to take some time to understand your consulting business and will be able to make recommendations about the levels of cover that might be most appropriate.
Why compare Consultants Professional Indemnity Insurance with Viking Direct Insurance Services?
Getting the right level of PI cover in place can be complicated. Ensuring that you’re meeting your legal requirements as well as any contractual obligations is difficult enough, before you have to make a decision about which insurer is best suited to your needs.
Speak to an advisor and get professional advice on what types – and levels of cover would be most suitable for your needs.