Professional indemnity insurance for small businesses
If your business gives any professional advice or provides designs to your customers, then you may be held responsible if they suffer a financial loss due to a mistake or error on your part. At the heart of professional indemnity insurance is a necessity to protect against potential legal costs that may come as a result of these mistakes and errors.
Here are a few real life claim examples:
A renowned architect is sued by their unhappy client for the costs of fixing an extension that was built from a structurally flawed design.
Without getting the right permissions first, an ecommerce business that sells trendy fashion used a brand logo on an item of clothing. The owners of the copyright were furious, putting in a claim against the small business.
A client sued his web designer for using unlicensed images on their website.
Find out more about professional indemnity insurance below or click here to get a quote:
Professional indemnity insurance is designed to provide financial protection for professionals in case they are sued by a client or third-party for professional errors or negligence. It covers a wide range of expenses, including legal fees, court costs, expert witness fees, settlements or judgements against you.
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Do I need professional indemnity insurance cover?
If you provide professional services, including advice (whether for a fee or not) or designs, then you may be held liable if a client suffers financial loss due to a mistake or error on your part. Professional indemnity insurance can provide protection in such situations.
Frequently asked questions about Professional Indemnity
What types of business might benefit from professional indemnity?
If your business gives any professional advice (whether for a fee or not), or provides services or designs to your customers, then you may be held responsible if a client suffers a financial loss due to a mistake or error on your part.
What does professional indemnity insurance cover?
Professional indemnity insurance is tailored for all types of professionals from accountants to consultants. It covers legal costs and damages that crop up from professional mistakes made by your business or from your employees. As an added bonus this kind of insurance covers claims of defamation, copyright infringement or a breakdown of confidentiality
What does the ‘limit of indemnity’ for professional indemnity insurance mean?
The limit of indemnity is the maximum amount your insurers will pay for a claim under your policy. It is super important to carefully review the policy limits to make sure you have enough cover for any potential legal costs and damages.