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Sometimes known as professional liability insurance or just indemnity insurance, professional indemnity insurance can help protect you against claims made by clients about work undertaken for them. If you are a freelancer, contractor or the owner of a small business and you’re considering taking out a policy, then there are a few questions that you need to ask in order to ensure that the cover is suitable for you and meets your needs.

When should my cover start?

You can choose when you want your cover to commence, so you can specify a date or just have it active from the date of purchase.

Do I need annual cover even if I only have a short-term contract?

Your contract may only last for a few weeks, but you will need to have a policy in place at the time of any claim being made. So, if you complete a contract but your client doesn’t make a claim until after you have finished the work, you would need to have a policy in place at the time of the claim in order for you to be entitled to a payout.

Taking out an annual policy means that you are covered continuously, so you can be reassured that you will be protected in case of a claim. Many contractors find that continuing their cover even after they have finished working allows them the peace of mind of knowing that they will not be left exposed to any claims made on historical work.

How long does it usually take to arrange cover?

For most policies, cover can be arranged immediately either online or over the phone and you can tailor your policy to suit your specific needs and current circumstances.

What are my payment options for this kind of cover?

You can usually pay for your cover either monthly or annually depending on which option suits you best.

Can this cover be applied retrospectively?

If you need cover which applies to work undertaken in the past then you can specify this and your policy will offer you protection against claims from projects that you worked on historically. This is often required for those such as IT contractors whose work may come under scrutiny for a considerable length of time after it was completed.

How do I make a claim on my policy?

Your insurance documents will include all the details on how to claim on your policy. They will also include details of emergency help lines for relevant situations, such as damage to your business premises or contents.

For more information on professional insurance and what type of cover is right for you click here to visit our insurance shop.