Could your business cope with unexpected legal costs? If you’re running your own business, as well as your day-to-day job, you probably have to deal
Do you understand the importance of professional indemnity cover?
You do your utmost to carry out your work to the very best of your ability, but mistakes happen. If any work you carry out or recommendations/advice you’ve given is found to have caused a financial loss or damage to a client, you could be at risk – not just financially, but reputationally too.
Professional indemnity cover can protect your business in these situations.
What is professional indemnity cover?
Professional Indemnity (PI) cover will protect against claims for loss or damage made by clients, or third parties, as a result of the impact of negligent services or advice you have provided as part of your job. For example, providing the quotation and plan for a new electrical installation, a re-wiring plan or electric vehicle charging point installation, which causes loss or damage after it has been installed, because it was incorrectly planned.
If something goes wrong as a result of the recommendations you’ve made and the client suffers a financial loss, they could decide to take you to court. PI cover will help with the costs.
When do you need to have professional indemnity insurance?
PI cover can help you secure new contracts – some clients will only work with businesses who are appropriately insured.
Another important point to be aware of is that having PI cover is a condition of membership for many trade organisations, such as NAPIT which requires its members to have at least £250,000 of PI cover.
Do I still need cover if I sell my business or retire?
You should also consider having PI cover for historic work you’ve carried out. It can take time for an issue to come to light as a mistake may not be apparent for some time after the job has been completed.
This extra cover, known as “run-off”, is important even if you retire, sell your business or decide to cease trading
PI cover included as standard with NAPIT Insurance
With NAPIT insurance, you’ll benefit from PI cover as part of the standard cover – which ever option you choose.
What’s more, the level of PI cover provided is £500,000 – double the amount required as part of the NAPIT membership conditions.
Why NAPIT Insurance?
NAPIT Insurance provides cover designed specifically for its members. We understand the work you carry out and the risks you face. We’ll help you understand them too so you can make informed decisions about protecting your business.
Talk to us to find out more or get a quote online today.
Give us a call: 0330 9000 701 or send us an email: firstname.lastname@example.org