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Professional Indemnity Insurance for Contractors
Professional indemnity insurance for contractors is essential, but the level of cover required depends on the industry you’re working in. Some sectors have professional bodies that state the minimum levels required, but your clients may also have conditions, which will be set out in their contracts.
- Prices start at £100-a-year
- Flexible limits from £50,000
- Expert advice
- Dedicated in-house claims team
- Optional extras available
The Alan Boswell Group Difference
We’ve worked with small businesses, sole traders and partnerships for more than 30 years. As businesses with unlimited liability, we understand the importance of professional indemnity insurance for contractors, and the protection it provides for both your livelihood and your personal assets. Our specialist PI team will work with you to get the right level of cover for each of your contracts, so you’ll be protected if you unintentionally make a mistake.
How our customers rate us
All very helpful and efficient. I think they made a real effort to understand how my organisation works and what I need.
Professional indemnity insurance for contractors in detail
The word ‘contractor’ broadly refers to people who are self-employed and have unlimited liability. As such, your personal assets are at risk if a client makes a claim against you. This includes building contractors, IT contractors, and freelancers in all industries.
Our specialist team can arrange professional indemnity insurance for contractors in a range of sectors.
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Defence and damages
If a client or end user suffers financially because of your services, professional indemnity insurance will cover the cost of your defence and any compensation awarded.
- Confidentiality breach If your business is entrusted with commercially sensitive or personal information in confidence and you unintentionally share it, you could be liable for putting the error right.
- Reputational damage During the course of providing your services, you may accidentally make false claims or damage another’s reputation, resulting in legal action being taken against you or your client.
- Copyright breach If you copy, or suggest that your client copy, another work you may be subject to legal action. You could be faced with a compensation claim for loss of earnings or charged with putting the work right.
- Loss of documents Whether you suffer a cyber breach or misplace vital paperwork, you could cause your client or their end users to suffer. PI would fund the recovery of replacement of these documents.
- Employee dishonesty Provides cover if your customers suffer a loss as a result of dishonest or fraudulent activity by a member of your team.
- Formal investigation If you are investigated by your professional or regulatory body, PI will cover the cost of the investigation and any legal proceedings brought against you.
- Pollution Can be added for environmental risks.
- Asbestos Can be added for risks related to asbestos.
FAQs
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It’s important to note that you need PI, even if you’re not dealing with the final customer. For instance, you may have been subcontracted to complete a task for another business, because that’s where your expertise lies. If your advice is incorrect, your client may be pursued for damages by the end user, before your client pursues you for those costs.
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If you’re a contractor that provides advice, designs, or specifications, you should consider taking out a policy. An experienced insurance broker will be able to advise on whether you need it and to what level.
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Consider the consequences of any service or advice you provide failing. You should also think about the value of your contracts and any specific obligations you have to professional bodies.
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