subject: Professional Indemnity Insurance: What Should I Be Looking Out For? [print this page] Professional Indemnity Insurance: What Should I Be Looking Out For?
There's no point in having professional indemnity insurance if you're not entirely confident that your policy will cover you in the event of a legitimate claim. After all, peace of mind is one of the main things you want in return for your money.
So what you should be looking out for when you're considering a professional indemnity policy?
The first question you need to ask yourself is whether the policy is specific to your profession. It's vital that the insurers have a clear understanding of what you do because that can significantly affect the risk they're underwriting. So, if you don't see your specific profession clearly identified when you first approach a broker for a quote, make some enquiries. Don't be tempted to fudge the issue - "well, I sort of do that" - because you could end up discovering that you're not really covered at all.
Then there's the question of exclusions. All insurance policies have them but when it comes to professional indemnity cover, they can be highly significant, particularly in relation to where you work. Just won a big contract to supply services to a US company? Great news. But be careful. Most professional indemnity insurance policies written in the UK do not include work done in the US as standard. So if you do carry out work overseas, or work for overseas companies, make sure the policy really does provide you with the professional indemnity cover you need.
Again, like other insurances, professional indemnity policies have an excess clause,
an amount that you will be personally liable for in the event of a claim. Think about that. Whilst a high excess amount might save you money on your premiums, are you sure you can raise the excess amount if you do have to claim?
But that's not to say that you can't still find a cheap professional indemnity quote that meets all of your requirements. You can. And you might very well find just what you're looking for.
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