If you work in a business that involves giving advice to customers, you may need professional indemnity insurance. This cover protects your business in case you give the wrong advice, which results in the customer losing money and deciding to sue you.
Professional indemnity insurance is not usually a legal requirement but is highly recommended if you are in the business of selling your knowledge or skills.
As a business owner, how do you decide where to go to find the best professional indemnity insurance?
Professional indemnity insurance is technical and it’s therefore best to speak to an independent business insurance broker for advice and to get a competitive quote.
You can buy professional indemnity insurance online but, in our opinion, this is risky as it is then up to you to decide whether the cover is right for your business. This can be tricky when you are unable to ask questions or discuss the policy terms and conditions. Policy wordings for this type of insurance are often long and complicated and a good business insurance broker will be able to draw your attention to the key sections
Most sites that that offer online quotations for professional indemnity insurance have a limited list of business descriptions to choose from. Your business may not exactly fit one of these categories. If you deal with a business insurance broker they will be able to specify exactly what your business description is, so that the insurer knows what they are insuring. Getting this right is important because the business description is one of the first things a claims handler will look at in the event of a claim.