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Professional indemnity insurance will provide protection for the defence costs and legal liability should a client bring legal action against you for financial loss to their business. Please refer to the applicable Policy Wording for a full list of what is covered under this policy. Please refer to the applicable Policy Wording for a full list of what is covered under this policy. Qdos Contractor are one of the leading providers of specialist contractor insurance services in the UK. Our online application process takes only a matter of minutes with all documentation issued instantly. Unlike many other brokers, we don’t hide our premiums until you've provided your details, as we are confident that our premiums, service and product are the best in the market. In addition, Qdos Contractor is one of the leading authorities on the IR35 legislation and have handled well over 1,500 IR35 enquiries on behalf of UK contractors. Qdos began in 1988 as a tax consultancy business and has grown significantly over the past two decades, providing expert business services, products and advice. Over the years, Qdos has grown in both size and reputation as a trusted contractor insurance broker as well as an expert tax advisor. Our aim is to provide UK contractors with the assistance and service with IR35 issues they need as well as sustaining excellent quality and competitive premiums in the contractor insurance market. Professional indemnity insurance is a type of liability insurance designed to protect businesses and individuals who provide advice or expertise to third parties. Also known as professional liability insurance or errors and omissions insurance (E&O), this cover is designed to protect you if a customer alleges that you provided faulty or inadequate advice and services. If you have professional indemnity insurance, the cost of your legal defence will be covered, along with compensation you may need to pay to the client following a claim made against you. Professional indemnity insurance should not be confused with other types of business insurance which cover more ‘tangible’ grievances, such as:
What does professional indemnity insurance cover you for?
What is professional indemnity insurance?Professional indemnity insurance is a type of liability insurance designed to protect businesses and individuals who provide advice or expertise to third parties. Also known as professional liability insurance or errors and omissions insurance (E&O), this cover is designed to protect you if a customer alleges that you provided faulty or inadequate advice and services. If you have professional indemnity insurance, the cost of your legal defence will be covered, along with compensation you may need to pay to the client following a claim made against you. Professional indemnity insurance should not be confused with other types of business insurance which cover more ‘tangible’ grievances, such as:
Do I need public liability and professional indemnity cover?Read our guide on 'What is the difference between professional indemnity and public liability insurance?'. Public liability insurance from TowergateFor more information see our product liability insurance webpage or call us on 0344 892 1664. Do I need professional indemnity insurance?Some professions are required to have professional liability by regulators in their industry. This includes:
Though not a legal requirement for everyone, professional indemnity is worth considering by any company or sole trader that is in the business of offering advice, knowledge or skills as part of their services. It’s also worth remembering that, with this type of cover, you’ll be protected regardless of whether a claim is justified or not. Furthermore, one of the most exciting business trends of recent years is the rise of independent consultants and small businesses, which offer highly-specialist knowledge, skills and advice to clients and customers. Offering these kinds of services is not without its risks. Mistakes are made from time to time, and without the right cover, these can prove costly. Examples of professional indemnity claimsDepending on your sector, the kinds of professional indemnity claims you could encounter will vary dramatically. For instance, a spelling mistake on a printed advert could land the responsible marketing agency in hot water. That said, there are some common claims which affect most industries:
How much professional indemnity insurance do I need?Professional indemnity insurance is often sold in varying limits. To decide how much professional indemnity insurance you need, you should consider:
The amount of cover required will depend on the amount of exposure that your client has. If you’re in an industry which requires you to have professional liability due to regulations, it’s likely that there is a recommended amount of cover associated with your profession. You can check this with your regulator to ensure you’re covering the amount required of you. Do I need both professional indemnity and public liability insurance if I am starting my own practice?Starting your own practice can be an exciting time, but it can also be daunting going out on your own, particularly with all the set up costs involved. When it comes to insurance, you need to consider whether you can afford not to have it in place. Faith Chapman from Towergate Insurance explains why professional indemnity and public liability insurance is important: Professional indemnity cover will protect against any claims made against you should you be accused of Professional Negligence, this can include things such as incorrect advice or recommendation, breach of professional code of conduct, loss of documents or breach of confidentiality. A client could allege that as a result of a recommendation you made in a session, they have suffered an adverse effect and as a result they have been harmed. This type of policy will cover the costs to defend you against this allegation, and ultimately if the client is successful in suing you, will pay out the damages awarded. Public liability cover will protect you in the event of any claims made in respect of accidental injury or damage to a client or a member of the public, and it also covers loss or damage to public property. If for example you accidentally spilt coffee on a client’s laptop this would be covered or if a client were to trip over whilst visiting you, this policy would cover the legal costs to defend you, and again pay out if the client was successful in suing you. Small business professional indemnity insuranceOne survey found that 75% of small business owners are worried about making professional mistakes, yet less than half of those who give clients advice take out professional indemnity insurance. If you’re a sole trader or heading up a small business, your client-base and budget might be limited, but the cost of a claim made against you can be damaging without the right cover. Professional indemnity insurance for businesses like yoursThe recent rapid growth in the number of small, dynamic businesses and freelancers in the UK is hugely exciting. Filling out niches which never existed until the last few years, this sector of the economy has a very positive future ahead. At Towergate, our professional liability policy provides cover for both professional indemnity and public liability meaning you only need one policy. Visit our professional indemnity insurance page or call 0330 123 5128 for more information. What is generally covered by professional indemnity insurance?Professional Indemnity Insurance is a type of liability insurance that provides cover for the financial consequences of neglect, error or omission by the professional or firm taking out the policy.
What is the difference between public liability and professional indemnity insurance?The difference between public liability and professional indemnity insurance is that public liability is tailored for claims by members of the public for injury, illness or damage while professional indemnity covers claims by clients for professional mistakes or negligence.
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