Monday, 27 September 2010

Professional Indemnity Insurance

There are many trades that need this cover and at Equity & General Insurance Services Ltd have one member of staff Dave Burn that has been in the trade 22 years and specialises in placing these types of risks.

Professional indemnity insurance, also known as PI insurance or indemnity insurance, can help protect you if claims are brought against you by a client due to a problem with work you have done for them.

Common businesses that need the cover are Managing Agents, Business Consultants, Architects, Surveyors, Accountants and Solicitors. These require the cover due to the advice they give to people. The simplest mistakes can be the most damaging. Marketing, media, advertising and communications professionals are particularly vulnerable to claims of negligence for simple errors such as a typo or mismatched Pantones. There is also the slander and liable issues as well.

IFA’s have been having a hard time reducing the costs of their professional indemnity policies due to claims for old endowment policies that may have been sold many years ago, also Mortgage payment protection policies that were also miss sold has soiled the industries name. Mortgage brokers have also bore the brunt of the claims due to selling many sub-prime mortgages and self certificated mortgages. Most of the companies that were involved in any of the above have either cleaned up their act or ceased trading.

Computer data companies, web designers and others that supply or keep records of clients will also require professional indemnity insurance. The main risk is errors omissions and breach of copyright and intellectual property.
There are now many people in the design, and construction areas of the market that have an obvious need as well. Security and Alarm installers are one category that design systems which must be correctly fitted as well, but there must be an original design and these are becoming increasing complicated.

Estate agents and Letting agencies also give advice firstly when valuations on properties are concerned then the printing of details of the details supplied to the purchasers or tenants. In the case of an Estate agent if they do not ask a client if they have had subsidence and later it is found out the property has been underpinned there is a breach of contract issue. Not all Estate agents carry professional Indemnity cover unless they are part of the association of National Estate Agents.

Many emerging and diverse trades that include organisers of various events, employment agencies, fitness trainers including ‘lifestyle’ coaches, graphic designers, health & safety consultants, laboratory and analytical researchers, marketing and market researchers, personnel & human resource consultants, translators, transport, distribution & logistics consultants. These can all be covered.

Cover:The simplest cover for certain trades sometimes will cost less than £10 a month, and excesses generally start as low as £250.
There are two types of policy one is called Any One Claim the other is Aggregate . Details of these can be explained thoroughly when a enquiry is made.

Procedure:ost insurers will require a signed completed proposal form and a copy of all directors CV’s prior to quotes being made available. Plus you must be in a position to provide details in the form of your three largest contracts, over the last few years. Or in the case this is a new business details of contracts that may be gained over the coming year. Financial figures of turnovers and breakdowns as to which sections of the business they come from will all be required.

If you would like to discuss your needs and find out the costs please contact Dave Burn he will guide you through the process of obtaining a quotation - CLICK HERE.


commercial liability insurance said...

I never heard about the Professional Indemnity Insurance. Thanks for discussing it. I am working for my client from last 2 years without signing any contract but now I will surely go for it.

Anna said...

If you have worked hard to set up a business, why risk not having professional liability insurance cover? It only costs a few hundred and could save you thousands....