On PlanCover blog, we have covered professional indemnity insurance numerous times, discussing everything from what it really is to what professional indemnity covers and doesn’t cover.
The next most obvious question comes is who needs professional indemnity insurance? After all, buying the wrong liability insurance is as bad as not having one. People ought to be careful to not end up with the wrong insurance.
So, do you need professional indemnity insurance?
PI policy is a type of liability insurance for individuals and businesses that offer professional services. The insurance protects them against legal liability. From legal charges to compensation for the damage sustained by the third-party, the insurance covers a wide range of expenses. It is one of the most important (and popular) types of business insurance policies.
Here are the services providers who should buy professional liability insurance:
|Web developer||Web designer||Marketer||Writer|
|Gym/fitness trainer||Graphic designer||Interior designer||Painter|
|Real Estate Agent||Dentists||Mortgage professional||Event planner|
|General handyman||Financial adviser||Architect||Counselor|
|Car rental agent||Caterer||Chef||Contractor|
|Nutritionist||Teacher/tutor||Personal shopper||Travel agent|
Many more professional services providers can be added to this list. If you see yourself on this list, and you still haven’t invested in professional indemnity insurance, you might want to pace up and buy it right away.
In case, if you don’t see your services here, that doesn’t mean you don’t need PI insurance. If you offer services to a third-party in any capacity, you should ideally invest in this liability insurance. Consult an insurance broker to learn more; they can help you figure if you need or some other policy better fits your case.
Recommended Read: Should You Buy A Professional Indemnity Insurance Policy?
Now, the next question is fairly simple: How to buy professional indemnity insurance? This question is more relevant in the current context because professional services providers like those mentioned in the above list don’t necessarily have a huge budget to spare on an insurance policy. They run a tight ship with constrained finance. Making every penny count is essential for them.
How to Buy a Fitting Indemnity Plan?
Every person or individual that offers professional services should buy an indemnity policy. But their requirements vary. A marketer won’t require the same insured amount as a fitness instructor. The coverage requirement of a doctor is dissimilar to that of a yoga instructor. Different professional services providers have their own set of risk exposures.
Your coverage amount, as well as the premium, would largely depend on your risk exposures. If you, as a professional services provider, are exposed to more risks in your day-to-day operations, your investment in professional indemnity insurance would be much higher.
So, the first step in buying the PI policy is outlining your exact requirement. Consider getting help from a licensed insurance broker. They can audit your requirements, measure risk exposures, and come up with a more definite figure regarding your coverage amount and premium. In case if the premium is high, you can take several steps in controlling your risk exposures, which will subsequently scale down your premium amount. For instance, if you’re a marketer and you rely on black-hat practices, you’re relatively at a higher risk of getting sued; stopping these black-hat practices and taking an ethical approach will bring down your risk exposures.
Also, do compare professional indemnity insurance plans of different insurers. Their cost, even for the same plan with similar features, may vary. Compare their plans and pick one that delivers maximum benefits at an affordable cost.
If you need more information, or personalized assistance in buying PI policy from licensed insurance brokers, get in touch with PlanCover today. Go here for free professional indemnity insurance quote.