Professional Indemnity Insurance for contractors explained
Contractors work in a number of sectors – you may work as an engineer in the construction industry or design security software in the IT sector. And while specific expertise may vary from one sector to another, as a consultant you offer professional knowledge and advice.
And while you may do so in good faith, things can go wrong. If a third party – a disgruntled client, for example – were to make allegations that the advice you provided was in some way wrong, for example through an error or omission, the damage to your business could be significant.
Firstly, you would be faced with significant legal costs in defending the claim. Those costs can soon mount up, and will do, whether you are guilty or not. Consultants Professional Indemnity Insurance can pay out for your legal costs.
Secondly, in the event that a court later awards a settlement against you, a Consultants Professional Indemnity Insurance policy could cover the amount due.
The precise circumstances around a claim can vary significantly, and will typically reflect the unique exposures that consultants face in different sectors.