Every builder, architect, interior designer, painter and decorator and plasterer needs to think about getting professional indemnity insurance cover in manchester. The reason? If you make a mistake that costs someone else money – or even worse, if you cause harm – then it’s not just your business that’s at risk; you could also be sued personally for compensation as well.
What Is Professional Indemnity?
Professional indemnity insurance is a type of cover that protects your business against loss caused by professional negligence. It is not just for architects and engineers, it’s something that can protect any trade. Professional indemnity policies can help if you have been sued for an error in your work or have to pay compensation because of a faulty service you have provided. There are several different kinds of indemnity insurance, each with its own specific policy benefits and limits.
What Does Cover Include?
Professional indemnity insurance covers any legal costs you may face if you’re sued for negligence in your work. For example, if a client claims that your work has caused damage to their property – and it isn’t covered by their own insurance – then you could be liable for those costs. However, PII can cover things like faulty materials and other such issues, too. Therefore, it’s worth checking what exactly is covered.
PI insurance can help you claim back loss of earnings if your work has been affected. With some policies, you may also be covered for any training courses or seminars that might be necessary to complete a project, as well as any tools and equipment that are essential for your job. You may even be able to make a claim for new sub-contractors or employees that you’re hiring to help with larger projects.
How Much Does PI Cover Cost?
The price you’ll pay for PI insurance will vary depending on your trade and how much cover you choose. If, for example, you work in an occupation with a risk of personal injury or public liability, it is likely that your premium will be higher than if you worked in a safer occupation.
Types of Risks Covered by PI Insurance
PI insurance policies cover professional negligence in all its guises, from breaking other people’s property to breaching health and safety rules, but they will not cover your normal tradesmen’s liability; you will have to take out a separate policy for that. Be aware that some insurers may use misleading terminology in their PI policies – ‘collateral damage’ rather than malicious damage, for example – so check exactly what is and isn’t covered.
How Do I Get Started With PI?
So, you need professional indemnity insurance cover. How do you get started? First of all, find a broker and make sure they’re an authorised representative. You can search online or ask your accountant. Then make sure they understand exactly what kind of work you do: whether you’re a builder, plasterer, painter and decorator – whatever it is – and if you specialise in anything specific such as energy saving solutions or restoration work.