Professional Liability Insurance

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junglist
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Professional Liability Insurance

Post by junglist » Wed Jul 12, 2017 9:35 am

Hi,

Does anybody carry professional liability insurance (as opposed to public liability insurance) here in the UK?

If so, can you give ideas of cost, any tips and where to go for this sort of insurance.

Many thanks,

J

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Jason Warren
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Re: Professional Liability Insurance

Post by Jason Warren » Wed Jul 12, 2017 10:05 am

Jason Warren

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nickherath
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Re: Professional Liability Insurance

Post by nickherath » Wed Jul 12, 2017 11:34 am

I’m writing from an Australian perspective but regulations and definitions in other countries should be very similar. There are several insurances to protect both yourself and others in doing business. Things can and do happen. Most often when it’s least expected.

In Australia, almost every client will expect to see evidence of the first three insurances before you can be considered as a supplier.

Professional Indemnity Insurance (PI) - For professionals who provide advice or services to their customers (surveyors are a prime example). PI Insurance protects businesses against legal costs and claims by third parties for damages arising from acts, omissions or breaches of professional duty when conducting your business. eg. As a surveyor, you inadvertently set-out a building or structure in the incorrect location which requires significant time and cost to remediate by your client and other 3rd parties. If you are found to be at fault, you will be liable for damages potentially from multiple parties who are directly affected by your fault or omission. On a large construction site, these costs for re-work and lost time can become extraordinarily large very quickly.

Public Liability – Protects against claims of personal injury or property damage that a third party suffers as a result of your business activities. eg. A member of the public trips on your equipment and breaks their leg as a result. In court, you will need to prove that you were not negligent in your actions that led to this injury and you may incur large legal bills in defence of this action.
We’ve all heard entertaining stories from our American friends and their litigious culture leading to incredulous claims. However genuine accidents do happen and claims of personal injury or property damage can be incredibly expensive. In Australia, typical insured sums are for $AUD10 million to $AUD 20 million.

Workers compensation insurance – This is compulsory for employers in Australia and the UK. If one of your employees is injured or becomes sick conducting their work it will help your business cover any medical expenses, rehabilitation costs and lost earnings. The cost of this insurance is typically a percentage of reported employee income.

General business insurances – Can come in many forms from general property protection (fire, theft, damage etc), motor vehicle insurance, business interruption, tax audit, breakdown insurance, transit insurance etc etc. You can insure yourself against almost anything these days and it all depends on your perceived risk profile for your business on what you decide to cover yourself for. It’s as easy to be under-insured as it is to be over-insured.

As a disclaimer, these are my personal experiences in running a business in Australia. Regulations and definitions may vary in your country. Always consult with an expert in the area. Not what you read on the internet.

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Re: Professional Liability Insurance

Post by richard_m » Thu Jul 13, 2017 8:08 am

Sadly there's been a glut of startups in the last couple of years whom I doubt could get PI insurance even if they had ever heard of it.

Seems to be a catch-22, they have an intense need for PI insurance as they are:

i. providing design-stage geo-information
ii. usually doing so with little or no training or experience (YouTube doesn't count)

Some brokers will try hard in order to chase a fat premium but most underwriters will see the risk and either walk away or include so many exclusions to the cover that its basically pointless.

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