A guide to professional liability

Knowing you need professional liability insurance is one thing but understanding what the various liability insurances are and how they protect your business is another. Our simple guide looks at what insurance professionals may need and how they can insure they have got it right.

man office professional indemnity insurance

What is professional liability insurance?

Our Professional liability insurance is a bespoke package policy designed specifically for consultants, contractors, therapists, freelancers and self-employed professionals. The insurance covers you for the day-to-day operations of your business and the multitude of ways in which a mistake or negligence could result in a claim being raised against you.

In the UK there is no legal cap at how much a compensation claim can be.  This means a claim could be hundreds of thousands, even millions of pounds; as long as it can be shown that the mistake caused a loss of this much.  For that reason liability insurance is vital for professionals.

It won’t just cover you for successful claims against you either. The defence of a claim alone could result in large costs including legal advice, solicitors and time away from earnings. Our professional liability insurance can cover you for these costs too, regardless of the eventual verdict.

Do I need professional liability?

If you own or run a business, you inevitably want some kind of liability insurance.  The type and indemnity levels though depends on the risks you face. Below is a description of the main liability insurances professionals should consider.

 

 

 

 

Optional limits

Having a choice of indemnity limits allows you to choose the level of cover relevant to you. If you are not sure what limit you need, we would always advise you to take out the highest limit you can afford. Alternatively, some professional associations will recommend a minimum limit, so you may wish to check with any associations you are a member of.

How to get ‘the best business insurance

Getting the best indemnity and liability insurance involves balancing the right cover that meets your requirements and protects you against the risks you face in your profession, whilst at the same time, providing value for money. This is why a policy from a specialist provider is always preferable. 

Optional insurance 

With so many professions and types of business, a complete list of all the various types of business insurance available would be too long to write here but some of the main areas of protection available are:

Exclusions

The exclusions of course will be different depending on your profession but your advisor will be happy to discuss the limitations of your policy during a quote.

Some of the common exclusions are:

  • Liability arising from work in or on aircraft/watercraft, or at airports or aerodromes in areas with aircraft access

  • Working with asbestos

  • Pollution and contamination unless sudden or unforeseen

 

Want to find out more about our Professional Liability Insurance?

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