Why does my business need professional indemnity insurance?

Professional indemnity insurance will cover you if a mistake or error is made in providing professional advice or services to a client.

How much cover do I need?

Professional indemnity insurance is arranged with a limit of indemnity. This is the maximum the insurance company will pay for a claim. Usually your defence costs are covered in addition. Costs for pollution and contamination claims are within the limit of indemnity. It is not possible to arrange insurance that will guarantee to meet all possible claims, but the recommendation would be to arrange cover for no less than £500,000. Contractually, you may find you need to arrange a higher indemnity limit.

How does a professional indemnity policy respond to a claim?

A professional indemnity policy is a claims made policy. The policy in force at the time a claim is made against you responds to the claim, regardless of the time the event causing the claim took place. If a consultant provided advice in 2012 which gave rise to a claim being made today, it is the policy in place today that would deal with the claim rather than the policy of 2012.

How do I cover my previous work; retroactive cover?

As a professional indemnity policy is on a claims made wording, cover for previous work is often called retroactive cover. The policy will have either a retroactive date, which means it will cover work performed after the retroactive date, or occasionally will have no mention of a retroactive date, in which case it would automatically cover all the previous work. You should make sure that the retroactive date, if specified, covers all work undertaken since the start of your business. Generally, if you have arranged continuous professional indemnity insurance from the start of your business you will have full retroactive cover.

What happens when I retire or sell the business?

If you are a sole trader and retire, then you should consider arranging run-off cover to maintain protection for claims against you after your last annual policy has finished. It is difficult to advise how long cover should be arranged for, but you should consider past work and anticipate the time frame for issues to arise. Bear in mind the limitation period for bringing claims in tort is six years from the date of the incident. If you sell your business, it is important that the sale contract establishes that the purchaser of your business extends their own professional indemnity policy to provide cover for all your previous work.

What does employers liability insurance cover?

Employers are responsible for the health & safety of employees while they are at work. If an employee suffers an accident at work or becomes ill through their work, a claim could be brought against you for compensation. There is a legal requirement, if you employ staff, to arrange a minimum of £5m of employers' liability insurance; most policies will automatically provide £10m cover.

Do I need to arrange employers liability cover?

If you are a sole trader: No. If you are a partnership: No, unless the partnership has employees. Limited company: Yes, to include Directors and employees. If your business is a limited company employing the owner, where they also own 50% or more of the issued share capital in the company, you do not require the cover.

IEMA member's Professional Indemnity Insurance cover

Name: IEMA Member’s Professional Indemnity Insurance
Brand: Alan Boswell Group
Rating: 4.8 (11289 reviews)

Alan Boswell Group has been working closely with IEMA and its members for over 20 years. As a Partner of IEMA we are able to offer the members’ exclusive cover specifically designed for professionals in the environmental industry, tailored to their needs and providing a comprehensive policy.

The Alan Boswell Group Difference

We are committed to providing a high level service and ensure that as a client, you not only get a dedicated account and claim handler but because you are an IEMA member, Alan Boswell Group will waive all their fees. In addition, we provide on-going support on insurance implications of contract terms, collateral warranties, or similar issues impacting on insurance cover.

Bricklayers Insurance with Alan Boswell Group

How our customers rate us

Excellent to deal with - straightforward, honest and very knowledgeable.

Rob - Professional Indemnity Insurance

4.8/5 11289 reviews

IEMA professional indemnity insurance in detail

The IEMA professional indemnity package provides cover for not only professional indemnity insurance that includes:

Any one claim limit of indemnity

Costs paid in addition to the limit of indemnity

An excess that does not apply to defence costs

Cover for work carried out by sub-consultants

Cover for asbestos work as an optional extension

Subject to underwriting.

Cover for pollution and contamination related claims up to the policy limit

Subject to an aggregate costs inclusive limit and an excess applicable to defence costs.

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Cover for public, products, and employers liability, office risks, cyber liability, and legal expenses can be included for an additional premium.

IEMA is the worldwide alliance of Environment and Sustainability Professionals. If you are not already a member as a client of Alan Boswell Group, you could get a discount of 15% off your first year’s membership. Just quote the code ALAN BOSWELL GROUP when applying.

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IEMA Member’s Professional Indemnity Insurance

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The Alan Boswell Group Difference

How our customers rate us

IEMA professional indemnity insurance in detail

Any one claim limit of indemnity

Costs paid in addition to the limit of indemnity

An excess that does not apply to defence costs

Cover for work carried out by sub-consultants

Cover for asbestos work as an optional extension

Cover for pollution and contamination related claims up to the policy limit

FAQs

Why does my business need professional indemnity insurance?

How much cover do I need?

How does a professional indemnity policy respond to a claim?

How do I cover my previous work; retroactive cover?

What happens when I retire or sell the business?

What does employers liability insurance cover?

Do I need to arrange employers liability cover?

Get in touch

Thank you for your enquiry, we will be in touch shortly.

Contact details

Thank you for your enquiry, we will be in touch shortly.

Contact details