By Lynne Gowers on 2nd April 2015

A guide to Professional Indemnity Insurance

One of the most important covers for a business owner or freelance professional, whether they are self-employed or working through a company, is professional indemnity insurance (PI.) Below you’ll find quick overview of PI, why you should consider it and a simple solution to finding the right cover. Whilst we have set out some of the general considerations, you should consult with an insurance broker for advice specific to your circumstances.

As a contractor, you’ll find agencies often insist that you hold adequate business insurance before undertaking a contract. Having the right insurance in place will ensure you’re in line with these terms and provide you with the necessary cover should a claim be made against you. It’s also an indicator to HMRC that you are operating as a legitimate business, demonstrating a financial obligation and a responsibility to protect your company interests. interests. If you have any employees, including family members, there is a legal requirement to have Employers Liability insurance, as well as considering PI.

Guide to Professional Indemnity Insurance

What is Professional Indemnity Insurance?

In the simplest of terms, professional indemnity insurance is designed to protect the business owner against claims for negligence (such as making a mistake, or giving incorrect advice). It also provides cover for loss of documents, loss of data, breaches of intellectual property, and defamation and libel.

Do I need it?

Absolutely! If you make a mistake for which you’re responsible, or are deemed to have been negligent, then professional indemnity insurance will cover any compensation that you have to pay as a result, as well as any legal costs you’ve incurred in the process. A mistake could end up costing you tens or hundreds of thousands of pounds so it’s vitally important to have the right protection in place. It’ll also cover the cost of fixing any mistake you may have made, which could help you to avoid having an even larger claim made against you.

Even if you’re accused of a mistake and you don’t think you were negligent, it’s still costly to defend yourself. Professional indemnity insurance provides you with the protection to be able to defend the claim.

It’s also worth noting that you shouldn’t purchase PI simply to cover the period while you’re on assignments or under contract, as the cover will end as soon as you cancel or lapse the policy.

Your business insurance solution


There are various insurance brokers who can assist you and your company. One of these is Kingsbridge Professional Solutions who offer an insurance package which is specifically tailored to the unique needs of those working on a contract basis. Their insurance solution provides a number of key insurances, including professional indemnity, and they guarantee that you won’t find such a comprehensive insurance product at equivalent value anywhere else on the market.

Any information or advice provided by Kingsbridge will be entirely independent of Boox and be specific to your circumstances. You are free to raise any questions at any time, and are under no obligation to obtain advice or use their services.

If you would like us to refer you to Kingsbridge, please contact us

Written by Lynne Gowers
Disclaimer Although we attempt to ensure that the Information contained in this publication is accurate and up-to-date at the date of publication it may not be comprehensive, we accept no liability for the results of any action taken on the basis of the information they contain and any implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and accuracy are excluded to the extent that they may be excluded as a matter of law.

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