Self-Employed Professionals face more PI claims

It’s has become apparent in recent years that more and more contracted workers are being asked not just to complete a task, but are also relied on to advise what might be required for the task, or asked to provide opinions and guidance.

A landscaper, for example, may be asked to propose changes to a garden then blamed when it results in bad water drainage, or a Graphic Designer commissioned for a logo may find their design at the centre of a copyright dispute.

Any business which offers any sort of advice or handles data could find themselves exposed to a Professional Indemnity claim.

Professional Indemnity insures a person from suffering a financial loss due to things like negligence, defamation and breach of confidence. It covers your professional risk for errors and omissions, legal costs and expenses incurred in defending you, as well as fines that may be awarded, for alleged service that causes your client damages.

FSB Insurance Service is concerned about this vulnerability many professionals face, and have managed to secure a unique, first-to-market insurance product which can include this risk at a surprisingly low cost, it covers up to £100k for just £25 extra (+ Insurance Premium Tax) per year.

Below are some of the notable features of this policy that we believe FSB Members will find useful:

 

Public and Products Liability

This covers your business against injury or damage caused to another person (or their property) as a result of business activity (for example, if you’re a chartered surveyor who conducts a property survey after which the building turns out to have undetected subsidence!) or arising from any product you’ve supplied (for example, a faulty musical instrument if you’re a music teacher who has acquired an instrument for your student).

The policy includes indemnity up to £5m but increased limits are available too.

 

Professional Indemnity Extension

This is an add-on feature and covers £100k Professional Indemnity for just £25 surcharge + IPT, with increased limits available.

 

Tools limits of up to £10k

Most policies will provide tools cover for up to £5,000, this policy doubles that and includes ‘Goods in Transit’ as standard. This means you don’t need to worry when moving from job to job, as your tools of the trade are totally covered.

As a professional, this could include any artwork you’re delivering to a client, your laptop and presentation equipment and any books or materials you carry with you.

 

Business Equipment and Money Cover up to £25k (inner limits apply)

Business equipment can include items such as computers, your phone and any other equipment you use for work.

Also, you have up to £1,000 of cash money covered as part of this section, which is a great benefit if your business takes any payment in cash.

 

Employers Liability for up to 10 employees (and automatic temporary employees extension)

Obviously, if you employ (including volunteers, work experience and some subcontractors, read more on that here) you are legally required to have Employers Liability insurance. This is included at no extra cost under this policy.

 

The above points are to illustrate some of the unique features of this insurance package, and is not a comprehensive list of the benefits this policy provides. For more information, please contact FSB Insurance Service.

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