Do i need professional indemnity insurance as a contractor

Insurance For IT Consultants. Experts In Small Businesses. Apply Today And Pay Monthly. All risks cover for property and contents, liabilities and more. Do contractors need indemnity insurance?

Does professional indemnity cover installation? Why is professional indemnity insurance? Can I claim for a mistake in my contract? When operating as a limited company contractor , many risks faced by businesses can seem to not apply. Professional indemnity insurance is often stipulated in contracts , but many contractors are unaware of why they must hold it when running a limited company.

The simple answer is yes. Although construction workers will have a lot more physical risk, there can be a lot of risks associated with the IT industry.

Hi there, If you are a sole trader, insurance is absolutely essential. Do you belong to a particular professional trade body? They will normally be able to advise you on what insurance they require you to have. Also, if you employ anyone. If you do not have approval to work in the UK currently, you need to apply for that.

If the company is to hire you. Many professions such as solicitors, architects, accountants, financial advisers, surveyors are required to carry professional indemnity insurance as a regulatory requirement. This guidance note is intended for information purposes only. It is not and does not purport to be legal advice or specific insurance advice.

If you work in accountancy, architecture or chartered surveying, it’s likely that you’re obliged to have professional indemnity insurance. Many clients require you to have professional liability insurance. You may also find that your client contracts require you to have a particular level of professional indemnity insurance. For example, if an error or omission in coding work causes your client’s system to go down meaning they suffered a financial loss, they could sue you. This helps Contractors demonstrate that they are in business on their own account and are protecting themselves against any financial risk if they make a mistake.

If you are producing designs and specifications as part of the quote process you should consider professional indemnity insurance because the potential client could give those designs and specifications to a different electrical contractor to get the work done. PI insurance will cover any genuine errors subject to any agreed excesses.

In most cases an agency contract will not protect you. There are many different professional indemnity products available for Contractors and Freelancers. Contractors themselves will decide whether they want to take out certain contractor insurance policies.

But most clients will require contractors to have such protection in place before starting your contract. Depending on your trade, you may be legally required by your trade association or regulatory body to have professional indemnity insurance , notably for surveyors, architects, medical professionals and indeed IT contractors. Such a policy should protect the contractor , as well as where the contractor keeps the design in-house. This is the most compelling reason to buy professional indemnity insurance.

Having professional indemnity cover in place means you don’t have to worry about the financial implications should a client sue you for professional negligence. Unfortunately, many contractors underestimate this risk. Taking out professional indemnity insurance could well be the best and most strategic business decision you will ever make. Any claims made would be against the umbrella company as they are your direct employer.

Professional Indemnity insurance protects against the cost of a claim, plus any legal fees incurred.