If your work as a contractor means that you provide professional advice or services, chances are that you’ll need to have professional indemnity insurance in place.
This form of cover provides financial peace of mind and means you have protection in the event of a third-party claim.
Today, we’ll be answering some of our most commonly asked questions about professional indemnity insurance.
What is Professional Indemnity Insurance?
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Professional indemnity insurance is designed to protect you financially if a third party makes a claim against you following negligence or a breach of professional duty.
Indemnity insurance means that you don’t have to use your own money for legal costs or damages following a successful claim.
Do I Need Professional Indemnity Insurance?
Many professionals are required to have professional indemnity insurance in place and you need to be aware of your own industry standards in relation to indemnity cover.
Even if you don’t have a professional obligation in relation to indemnity cover, this insurance policy offers ongoing financial peace of mind.
If you’re not sure whether indemnity insurance applies to you, speak with your insurance broker.
What Does Indemnity Insurance Cover?
Professional indemnity insurance will cover the cost of damages following a successful liability claim, as well as the legal costs associated with hiring a lawyer during the claims process.
It can also cover public relations costs if you need to hire a professional to handle the impact a claim may have on your professional reputation, along with court appearance and claims investigation expenses.
What Does Indemnity Insurance Not Cover?
As with all insurance policies, there are scenarios that your indemnity insurance won’t cover.
Common exclusions for indemnity insurance include intentional misleading conduct, claims that you were aware of prior to taking out the policy, fraud and dishonesty, and criminal fines.
There are also some situations, such as damage to property or injury to a person, which are covered by other policies.
How Much Will Professional Indemnity Insurance Cost?
There are a number of factors that are taken into consideration when it comes to the cost of your professional indemnity insurance, including the size of your business, the amount of cover you require, your claims history and your profession.
The higher your risk, the most expensive your premiums will be.
Contractor Cover understand the specific risks facing contractors and they have bundled the most common forms of cover, including professional indemnity insurance, into one convenient policy.
This means they’ve been able to negotiate high quality cover at a competitive price. At Contractor Cover, they believed to be a one stop shop – you can give them a call today for more information!
If you’d like to find out more about professional indemnity insurance, contact Contractor Cover today on 1300 438 268 or fill in their form for a professional indemnity insurance online quote.