It is the aim of every business to bring their clients complete satisfaction and happiness. This helps businesses to get loyal customers, and referrals and gain the trust of the targeted audience. It aids to build the business a great reputation. But one needs to be prepared if things go downside and not as per the plan. And that is where professional indemnity insurance for contractors comes to the rescue.
Professional Indemnity Insurance For Contractors
An unhappy customer suing the business is always an inevitable possibility. Therefore, professional indemnity insurance for contractors will help a business cover the costs incurred when someone sues the organisation. Similarly, professional indemnity insurance can be taken by any person who offers personal services like lawyers, accountants, freelance designers, etc.
Benefits Of Professional Indemnity Insurance For Contractors
- Protects the business financially from lawsuits
- Saves time and money
- Ensures peace of your mind
- Saves you from allegations
What Does Professional Indemnity Insurance For Contractors Cover?
These are the few crucial situations where professional insurance for contractors will take care of you.
Breach of Confidence or Copyright
The insurance will take care of your alleged sharing of private client information without permission or for copyright infringement.
Professional Negligence and Defamation
Your service or advice causes loss to the client or adversely affects the reputation of their business. Similarly, the insurance also protects you in case of any untrue statement you might have said about the client or their business.
Lost/ Damaged documents
In case of the situation where the contractor has lost or misplaced his documents or has come across damage to documents, the insurance will take care of it.
Who Should Take Professional Indemnity Insurance?
Professional indemnity insurance for contractors is recommended for businesses that offer services or advice directly to the customers or clients. In such businesses, there is a high chance that the customer may sue the contractor based on their perspective on whether there is a mistake or not. Here are a few examples of who needs professional indemnity insurance:
Lawyers/ Attorneys
When you are a lawyer or an attorney who connects with the client directly, there is a chance one of your clients may try to sue you when something goes wrong in their perspective. Hence, professional indemnity insurance will aid you to prepare your business against such risks and circumstances.
Consultants
Marketing consultants, education consultants, business consultants, training consultants, recruitment consultants, etc. Any type of consultant agency is prone to the risk where one of the advice may take an unexpected turn on a client. Hence, professional indemnity insurance will make sure to aid the business get through such situations.
Teachers and Trainers
This includes dance teachers, private tutors, gym trainers, personal trainers, Zumba teachers, yoga instructors, etc. Protect yourself from allegations of mistakes with professional indemnity insurance.
Designers
Professional indemnity insurance will help secure interior designers, illustrators, web designers, graphic designers, architects, etc from uncertain risks of their business.
What Is NOT Covered By Professional Indemnity Insurance ?
Let us take a look at the list of circumstances that are not covered by professional insurance. This might differ from company to company. Although, below are some of the general circumstances that are not included under the coverage of professional indemnity insurance.
Loss of a partner
The insurance is exclusively for the person taking professional indemnity insurance. It won’t cover the loss of a joint venture. Professional indemnity insurance for contractors will not cover the loss incurred by your partner.
Exclusion of Circumstance
Professional indemnity insurance for contractors does not cover the circumstances that took place before the business insuring.
Loss
The insurance is solely for the contractor or one person alone. Hence, the professional indemnity insurance for directors and contractors does not cover any loss incurred due to pollution of the environment or similar causes.
Employee Injury
This insurance policy does not cover the expense to take care of accidents or injuries caused to the employees of the business.
Costs Of Professional Indemnity Insurance for Contractors
Professional indemnity insurance requires to cover the risk of considerably larger financial loss. Therefore, the cost of professional indemnity insurance for contractors generally varies from business to business. Further, The cost can range from 0.25% to 5% of annual income which could vary depending on the market. Sometimes, there will also be a minimum premium agreement between the insurer and the business. In Addition, The risk factors will vary depending on the services or business offered. Similarly, the costs will also differ depending on these factors from organisation to organisation.
Conclusion:
In short, it is very important to get professional indemnity insurance. This is because the legal costs are rapidly increasing. Similarly, litigation is very common these days. The absence of professional indemnity insurance could put your company at huge risk. Secure your business today with professional indemnity insurance.
