While you may already have ensured you have public liability insurance or employer's liability insurance for your business, it may also be worth getting cheap professional indemnity insurance cover too.
What does professional indemnity insurance cover?
If your business provides advice or consultancy to clients then you are effectively selling your knowledge and expertise.
You could be anything from a mortgage broker to an accountant or business consultant. In fact, there are dozens of professions where this type of cover would be appropriate.
So, what happens if a client loses money because of your mistake? For example, you may have made an error when you were providing your advice or your work was late or not up to the necessary standard.
In this situation, a client may choose to make a claim for compensation. Even if you don't think you have done anything wrong you may face a legal bill for defending yourself. And, if a claim is upheld against you then you may have to pay compensation.
Professional indemnity insurance can protect your business by paying for these legal costs and any compensation that may be due. You may also find that many clients will want to see a copy of your professional indemnity insurance before they award a contract to you.
How to compare professional indemnity insurance quotes
There are two ways of buying professional indemnity insurance. Firstly, you can shop around for a dedicated insurance quote and take out a policy that offers this specific cover.
Alternatively, you can undertake a professional indemnity insurance comparison when you research the costs of more general business insurance policies.
The cost of professional indemnity insurance can often be lower if you include it as a rider when you take out a business insurance policy that also incorporates features such as property insurance, public liability insurance or employer's liability insurance.
Lots of insurers offer cheap professional indemnity insurance cover as an add-on to their business insurance policies. So, when you compare insurance quotes make sure you take the time to establish the benefits and costs of this cover between the leading insurers so that you choose a policy that meets all the insurance needs of your business while keeping cost low.
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