As a tradie, you may brush over Professional Indemnity Insurance thinking that due to the nature of your business being predominantly hands on, it’s not needed. However, if you provide expert advice or services to your clients free of charge, you need to be aware of the importance of indemnity insurance. If the advice you offer leads to an incident, you will be held liable which could cost you immensely in time and legal fees. Therefore, professional indemnity cover is a great way to protect yourself and ensure you are fully covered for any scenario.
What is professional indemnity insurance?
Professional indemnity insurance is designed for professionals who provide advice or services as part of their job free of charge. It provides financial protection against claims from a third party following financial loss due to a breach of professional duty or negligence resulting from an act, error or omission. In other words, it covers you if a client suffers from financial loss after acting on advice that you provided. It not only covers the costs associated with a claim but also legal bills involved with the process. If the advice you offer incurs a cost, you will require a different type of insurance.
Why do you need professional indemnity insurance?
If you provide any kind of advice free of charge as part of your job, you need professional indemnity insurance. This will cover you if something goes wrong when a client takes your advice and suffers any financial loss.
For example – As a landscaper, you may provide your client advice such as when to water a certain plant. If the client takes your advice onboard, the plant dies and they suffer a financial loss, you may be facing a legal battle. That’s where indemnity insurance comes in handy. Your insurance will cover costs involved with a claim and the level of cover will depend on your specific policy.
When to make a claim for professional indemnity insurance?
You would make a claim for professional indemnity insurance when a third party has made a claim against you after acting on free advice that you provided and suffered financial loss. To make a claim, contact our friendly team at All Trades Cover who will take over with minimal hassle. This will allow you to get on with your job and not waste time fighting legal battles.
What are you covered for with professional indemnity insurance?
Your professional indemnity cover will protect you against a number of things. It will cover you for all legal costs involved including hiring a lawyer to act on your behalf during any legal proceedings, the costs involved with hiring a public relations professional to protect your reputation, investigation costs to delve deeper into the claim made against you and any damages costs that you may be held accountable for after settling a claim.
How much does professional indemnity insurance cost?
The cost of professional indemnity insurance will vary depending on the level of cover you require. It will also vary depending on the type of work you do, the size of your business, the number of employees you have, your annual turnover, your history of insurance claims and how much cover you require. The higher your risk of an indemnity claim, the more your insurance premiums will cost.
All Trades Cover offers easy online quotes with optional coverage packages customised to your needs. We offer a friendly, reliable service, and have a proven record of customer satisfaction with our clients.
Contact us for a professional indemnity insurance quote today from our friendly and professional experts. We also provide various extensions to your chosen package per your requirements.