As a contractor, you need to ensure that you have the right insurance in place so that you’re protected when things go wrong. For many of you, that will include professional indemnity insurance. Indemnity insurance is no longer a consideration only for lawyers and doctors and there are a number of professionals who need to have this cover in place. Today, we’ll be looking at why professional indemnity insurance is so important for contractors.
What is professional indemnity insurance?
If you provide professional advice or services as part of your work, you most likely need to have professional indemnity insurance in place. This cover protects you financially if a third party suffers a loss and makes a claim against you for damages. A liability claim could be the result of act, omission, negligence, or breach of professional duty and without cover in place, you’ll be left the shoulder the financial burden.
What does professional indemnity insurance cover?
Your professional indemnity insurance will cover the cost of a successful claims for damages made against you. Not only that, your indemnity insurance can cover the legal costs associated with hiring a professional to represent you and costs associated with investigating the claim. Not only that, indemnity insurance can also cover public relations costs if you need to hire someone to assist with the damage a claim may have to your professional reputation.
Why is professional indemnity insurance important?
Professional indemnity insurance is important because it offers ongoing peace of mind that you’re protected financially. An indemnity claim can occur all too easily and can be the result of a serious breach of your duties or something as simple as forgetting to file appropriate paperwork. No matter how simple the mistake, an indemnity claim can have serious financial consequences for you and your business. Further, for many professionals it’s compulsory to have indemnity cover in place for you to practice.
How much will my indemnity insurance cost?
The cost of your professional indemnity insurance will differ according to your unique circumstances and the higher risk your job is in terms of a potential indemnity claim, the higher your premiums are likely to be. When it comes to the cost of your indemnity insurance, factors such as the size of your business, the amount of cover you require, your claims history and your profession will all be taken into account.
At Contractor Cover, we offer professional indemnity insurance to contactors along with a range of other policies including public liability, general property, personal accident and illness, and life insurance. We work hard to make the process of buying insurance simple for contractors by combining all of the policies you need into to one convenient package.
For more information about indemnity insurance, speak with Contractor Cover today on 1300 438 268. You can also go online for a professional indemnity insurance online quote.