No longer limited to the realm of solicitors and accountants, more than 500 professions now opt for Professional Indemnity cover in the UK.
Indemnity for all
Emerging occupations in science, the medical sector, architecture and technology consider indemnity cover a business essential, whilst professionals in marketing, design and IT consultancy ply their trade safe in the knowledge that should something go wrong, they are covered.
If you give advice, offer your knowledge or expertise, or even have your sub-contractors perform tasks for you, covering yourself in case of a simple or complex error is a no-brainer. It’s why many professional bodies and regulators require their professionals to have indemnity cover in lieu of such an event.
For those that don’t, it’s a perhaps tempting but naïve idea that your company won’t make a mistake. Evidence shows that mistakes can, do and will happen again to businesses of all sizes, regardless of stature, sector, wealth or how well-managed it may be.
Where there is blame…
So mistakes happen. We get that. But you’ve got your Professional Indemnity cover and you’re protected, right?
Recent changes to legislation signify an increased cost of liability claims which means previous limits may no longer be sufficient to cover you. For example, if a mistake you make leads to a claim in excess of £150,000 and your liability limit is £100,000, how will you pay for the remaining £50,000?
Blame is a part of our culture nowadays, like it or lump it. If you take on work which leads to a loss for the client, the client will often hold you personally accountable. You can spend considerable time and money trying to defend yourself without appropriate cover. If the loss was caused by a sub-contractor and their indemnity policy is insufficient, this adds further problems which you will have to juggle whilst trying to protect your reputation and, potentially, complete the work in the meantime.
Getting it right
At Weir, we understand that a generic, one-size-fits-all policy may make you look genuine, but isn’t going to protect you when you actually come to rely on it. If you do make a mistake, getting the indemnity limits right will ultimately define your future. If you’re not able to pay the shortfall personally, your business could end overnight.
Our team will take the time to establish what you do, your clients and any sub-contractors you work with. We will run through worst-case scenarios so that your liability limits will then be based on genuine estimates, not patchy guesswork.
It means that you can operate stress-free and with confidence in the meantime, having the full trust of your clients. If a situation does arise, you can rest assured that your business is safeguarded the way it should be.
For more information on Professional Indemnity cover, or to check if your current liability limits are adequate, contact the team at Weir now.