- It can be the difference between staying in and going out of business, should a claim be made against you
- It offers peace of mind and reassurance that you’re protected from the main risks associated with running a business
- It demonstrates to your clients that you’re aware of your responsibility to protect their interests
- It protects you and your client if something goes wrong
- Ultimately, having the correct business insurance policy helps support you, your business, your clients, and the general public should the need arise.
- It can also protect you from:
- Loss of documents
- Loss of data
- Breaches of intellectual property
With appropriate professional indemnity insurance, you’ll also be covered for any damages you have to pay as a result of a claim against you, as well as any legal costs you incur in the process of a claim being made.
James works as an IT contractor and has taken a job for a London financial firm. While working, he accidentally wipes a hard drive, losing vital customer data. The client makes a claim against James for a hefty sum due to negligence. James has professional indemnity insurance and is covered. If he didn’t, this would be costly and could jeopardise his business.
- Damage to third-party property
- Injury to third-party persons
- Legal fees for investigation and defence
Alice is a designer and has been contracted to paint a large mural on the side of a building. While working on this, she accidentally knocks a tin of paint off a ledge which falls onto a passer-by. The passer-by sues Alice for a substantial sum. Alice has public liability insurance, which covers her for injury to a third party, allowing her business to keep running.
Gerry is working on a contract for a financial firm. He falls ill and employs Paula temporarily to complete the work. As a temporary employee, Paula would be covered by the provisions in the employers’ liability section of Gerry’s policy, should she injure herself at work as a result of Gerry’s negligence.