Why all home businesses need Professional Indemnity Insurance

Why all home businesses need Professional Indemnity Insurance

United Kingdom

Choosing the correct insurance products to suit your home business needs is actually quite straightforward and largely depends on what type of business you operate, how large it is and what sort of assets you need to protect. Read more...


Choosing the correct insurance products to suit your home business needs is actually quite straightforward and largely depends on what type of business you operate, how large it is and what sort of assets you need to protect.

No matter what kind of what your company you run, every home business in the United Kingdom that employs one member of staff or more is required by law to have an active Employers' Liability Insurance policy in place.

Does your business offer a knowledge or skill? This may be providing financial advice, design work, specifications, supervision etc. you have a responsibility and duty of care to your this client.

Did you know that three-quarters of home business owners say they worry about making mistakes on client projects, and almost half worry about giving bad advice? Do you worry about this? What about being sued? A quarter of home business owners worry that one of their clients will make a compensation claim related to their professional services.

But despite their worries, more than half of small home business still fail to buy professional indemnity insurance - so how do you know if you need professional indemnity cover?

If you’re not sure if you need professional indemnity insurance, here's a quick guide :

You provide advice and consultancy

Clients can claim compensation if there’s a mistake in the advice you’ve given

You provide an expert service

In case you make a mistake in designs, plans or calculations

You handle people’s information

You could face claims if you accidentally disclose data or infringe on a client’s legal rights

A client insists you have it

Many clients will require that you have professional indemnity insurance in place before you can start working for them

Your professional body requires it

You might belong to a professional body or industry association where professional indemnity insurance is compulsory

No matter how professional, experienced and cautious you are, mistakes do happen. Any business, large or small, that provides a service to customers should consider Professional indemnity insurance.


Editor Notes:

Professional Indemnity Insurance - https://www.caunceohara.co.uk/products/professional-indemnity/