Five reasons why you need Professional Indemnity Insurance from ContractorUK
Professional Indemnity Insurance is advisable for any business offering a service or advice to clients; a must for almost all contractors, freelancers and consultants.
It is designed to protect you from claims made against you by clients as a direct result of work that you have completed for them, covering you in case of allegations of libel and slander, loss of data, breach of confidentiality and negligence.
ContractorUK have taken a closer look at the top five reasons as to why you need Professional Indemnity Insurance:
1. Your reputation needs protecting
Professional Indemnity Insurance is there to help you defend yourself should an allegation be untrue or to keep the negative impact of a court case to a minimum. PI Insurance will cover the legal fees you may need to pay out in order to defend yourself. Getting experienced legal help can go a long way to minimising irreparable damage to your business and your customers’ confidence in you should a claim go against you.
2. Your regulatory body requires you to have it
In many industries governed by regulatory bodies you will be obligated to hold PII. Holding PII is a sign of a reputable organisation and without it you will not be recognised as a member. In many instances each year, professionals are struck off their professional register due to practising without Professional Indemnity Insurance.
3. Your clients will expect you to have it
Most businesses will expect you to hold PII. Both private businesses and public sector organisations will try to minimise risk as much as possible, and one way that they do this is by expecting the companies that they work with to have adequate protection – including PII. Holding Professional Indemnity Insurance is also a way of showing professional credibility and making customers aware that they will be working with a responsible and efficient business or professional.
4. You want public sector contracts
Public sector organisations are very risk averse. As they are dealing with public money it is extremely important to public bodies that they are well protected, and that means working solely with companies who have the correct protection policies in place. All tendering processes will specify that you hold PII and the level of PII required, so if you’re looking to secure a public sector contract then it is crucial that you have PII in place.
5. To protect yourself
The most important reason to hold Professional Indemnity Insurance is to protect you and your business from the huge cost implications that having a claim made against you can bring. No matter the size of your business you are always vulnerable to litigation for a wide variety of damages and professional indemnity insurance is essential to protect you.
For more information on Professional Indemnity Insurance please visit Contractor UK.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.