Question: Do I Need Public Liability And Professional Indemnity Insurance?

Do I need both public liability and professional indemnity insurance?

Public liability insurance is essential for any company, but whether you need professional indemnity depends on what type of business you run.

You could save money by combining both insurances on one policy, but first work out if you need both types of cover..

Do contractors require professional indemnity insurance?

Along with public liability, which covers property and other people, your contractor must have adequate protection in the event of legal liability. This is where Professional Indemnity insurance is important.

Who needs professional indemnity?

Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you’re alleged to have provided inadequate advice, services or designs that cause your client to lose money.

Do electricians need professional indemnity insurance?

Do I need professional indemnity insurance? … If you are producing designs and specifications as part of the quote process you should consider professional indemnity insurance because the potential client could give those designs and specifications to a different electrical contractor to get the work done.

What is the purpose of professional indemnity insurance?

Professional indemnity insurance protects you and your business against claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of professional services.

Do we need public liability insurance?

You’re not legally required to have public liability insurance, but if you’re a business owner the chances are you’ll need it. Public liability insurance covers your costs if someone else sues your business – and without cover, unexpected legal costs could bankrupt your business.

Who does professional indemnity insurance protect?

Professional indemnity (PI) insurance is a commercial policy designed to protect business owners, freelancers and the self-employed if clients claim a service is inadequate. Any organisation which provides a professional service or gives advice could be sued if the recipient is unhappy with their work.

Do I need public liability insurance as a subcontractor?

If you work as a subcontractor, your employer is under no obligation to include you in their Public Liability Insurance Policy. If you work as a subcontractor, even if you only work for one employer or company, you’re considered to be running your own small business and are therefore responsible for your own actions.

What level of professional indemnity insurance do I need?

You can usually choose between £50,000 and £5 million of professional indemnity insurance. Your regulator, professional body or client contracts may tell you the minimum amount you need.

What is not covered by professional indemnity insurance?

Professional indemnity insurance can cover compensation payments and legal fees if a business is sued by their client for a mistake they’ve made in their work. … Bear in mind, however, that professional indemnity insurance does not cover you for the cost of any reputational damage that the mistakes have caused.

Professional insurance is not a legal requirement for businesses. … However, professional indemnity insurance is mandatory for members of some professional bodies and is required by some regulators. This means it’s effectively compulsory for some professions.