November 15, 2021

The financial implications of operating without Professional Indemnity Insurance

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The financial implications of operating without Professional Indemnity Insurance

Operating without professional indemnity insurance leaves your business open to claims and, in turn, huge financial risk. The costs of a claim can quickly reach hundreds of thousands and even millions. Most insurers offer policies which provide cover from an indemnity limit of £50,000 as standard. At constructaquote.com we offer limits of indemnity online from £50,000 up to £2 million; however, as a specialist in small business policies if you speak to one of our dedicated insurance agents they are also able to quote above £2million offline.

Facing a claim without insurance is not something many businesses can survive. The combined costs of damages, expenses, and legal defence will have to come from the business’ working capital or savings.

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What does Professional Indemnity Insurance cover?

Below are some examples of potential professional indemnity claims:

• A self-employed web designer sued by a client who has been sent a bill by a third party, claiming their copyrighted images were in the client’s web design.

• A professional architect sued by a client because they have had to pay for changes to a building project due to flaws in the architect’s plan.

• A professional IT consultant who offers web hosting as part of their package sued because a cyber-attack meant a client’s website was offline and caused a loss of potential earnings.

• A small marketing company sued because of spelling errors and incorrect information in a flyer that has already been printed and sent out to customers.

These are just some of the potential claims a business could face. Your business is protected by professional indemnity insurance to protect against the specific risks it faces.

Any questions? Please don’t hesitate to contact one of our team.

Stuart.belbin@ascendbroking.co.uk  |  Office: 01245 449067