Professional Indemnity Insurance (PI)

PI claims vary depending on the industry sector, below are some examples:

IT contractors – A software application or website that you delivered for a client is not fit for purpose. The client makes a claim against you for the cost of rectifying the mistake.

Engineers – CAD work you provide for a client contains incorrect measurements which cause delays to your client’s project. The client makes a claim against you for the cost of correcting the errors.

Management consultants – A business plan you delivered to a client does not deliver the expected results that the client had hoped for. The client claims against you for any monetary loss incurred as a result.

Construction contractors – Claims can be made due to perceived poor business advice, professional errors, defamation or libel, and sub-standard work. PI insurance can cover the cost of legal defence, compensation payments, any additional costs for rectifying an issue and loss of income as a result of the claim.

Creative media professionals – You make a mistake in work you produce for a client or break the terms of a contractual agreement. The client claims for any monetary loss incurred as a result. PI insurance will cover your defence costs if a claim is brought against you.

If your circumstances change, either at work or in your personal life, that require you to end your contract early it is in the best interest of both yourself and the hiring party to make this transition as easy as possible. Read our article covering what the potential implications for a contractor leaving a contract early could be.

At Caunce O’Hara we offer comprehensive PI insurance from as little as £98.00 a year (that is only £8.16 per month). Your premium will depend on the amount of cover you need, the risks of your profession and the excess amount.

Call our friendly team today to discuss the right level of cover for your needs on 0333 321 1403 or click the green button below for an online quotation.

Professional Indemnity insurance does not cover all insurance claims, including:

• Fines and penalties
• Radioactive contaminations and sonic bangs
• War risk and terrorism
• Mould Legal action
• Employers’ liability
• Property
• Dishonest and malicious acts
• Penalties or liquidated damages
• Joint ventures
• Circumstances known at inception
• Retroactive date
• Pollution
• Design and construct/supply
• Insolvency or bankruptcy
• Financial interest
• Trading losses
• Directors and officers
• Asbestos
• Patent
• Coronavirus (Covid-19)

Click here to find out more detail about what is not covered by PI insurance.

There are two ways in which professional indemnity policies are written:

Claims made coverage – You are covered for claims made for the duration of your cover, regardless of when the incident occurred.

Claims occurring coverage – This will only cover you for work done during the insurance coverage period. Therefore, it is important to understand the terms of your agreement.

Our team can help to talk you through the policy options, so you will not be left in the dark. Simply call 0333 321 1403 for assistance.

The level of protection you need will depend on the value of the work you do and the potential liability. Caunce O’Hara can help you build the ideal insurance policy that will help protect all areas of your business.

Caunce O’Hara offer professional indemnity ‘run off ‘cover, which provides you with insurance after your business has ceased trading. Run Off insurance is important for people entering retirement because they want the peace of mind that they are still covered.

Run off insurance can sometimes be a fraction of the full professional indemnity insurance premium, and in some cases the premium will reduce year-on-year.

It is important to be aware that even though your business is no longer trading you can still be subject to a claim made against you for up to 6 years after your business closed, for instances see ‘claims in relation to’ below. The relevant limitation periods for different types of claims set out in the Limitation Act of 1980 are as follows:

PI insurance ‘claims in relation’ to:

• recovery of land: 12 years
• a contract: 6 years
• awards in arbitration: 6 years
• debt arising under statute: 6 years
• negligence: 6 years
• breach of trust: 6 years
• tort: 6 years
• personal injury: 3 years
• defamation and malicious falsehood: 1 year

Public liability insurance (PL) is designed to protect your business against third party claims for injuries or property damage.

Employers liability insurance (EL) will cover the cost of defending or settling a claim against you from an employee who has suffered injury or disease as a result of the work they do for you.

It is important to be aware that as a self-employed business owner, a claim can be made against you personally with unlimited personal liability, therefore Directors and Officers insurance is a valuable insurance policy which will cover you in this instance, which is provided as part of our Business Combined Liabilities insurance product.

Legal Expenses insurance will also provide cover for costs incurred from a legal occurrence or claim that your indemnity and liability insurance does not cover, including the costs incurred from an IR35 tax investigation.

Cyber insurance, also known as cyber liability insurance, will cover your business in the event of a malicious attack on your computer systems and your data.

Personal accident insurance can provide cover for your loss of earnings while you are unable to work due to a work-related accident or illness caused by your work.

Commercial crime insurance can be beneficial to anyone who ones or runs a business, no matter how large that business is. Theft and other crime can have catastrophic consequences for a business and potentially to those who are connected to that business, such as suppliers and employees.