Call WHAT IS PROFESSIONAL INDEMNITY INSURANCE?
Our Professional Indemnity Insurance protects businesses and individuals who provide designs, advice or expertise as part of their professional service. The insurance covers costs incurred if a customer alleges that you provided faulty advice and they have suffered a financial loss as a consequence.
As much as you focus on delivering a fantastic service, we can all make mistakes on occasion, and it can sometimes be the simplest errors that end up being the most costly. This insurance protects you against these potentially significant costs, so you don’t have to worry about your business going under due to a claim.
WHAT DOES THE POLICY EXCLUDE?
Coverage is broad and it is rare for claims to be excluded, although it is important that cover is in place at the point at which the complaint or issue first arises, and that the work undertaken that causes the claim was undertaken after the ‘retroactive date’ of the Policy. The retroactive date will normally be the date that Professional Indemnity insurance was first purchased, provided that it has been held continuously since that date (even if it has been provided by different insurers).
WHO NEEDS PROFESSIONAL INDEMNITY INSURANCE?
Any tradesperson that has a design element to their service or provides professional advice. Sometimes holding this insurance will be made a condition of a contract by a contractor or customer, so you’d be losing out on work if you don’t have it.
Rhino can provide cover for most trades, with the exception of some areas that are deemed too high-risk by the insurer. We have listed a few examples of instances where professional indemnity insurance would be needed below:
- An electrician installed emergency lighting that did not comply with the relevant building regulations, the lighting needed to be removed and new lighting re-installed.
- An electrician designed and installed a backup generator in a shop, the generator failed causing damage to frozen foods and impacting the shop’s ability to trade.
- An engineer designed a heating system that was alleged to be inefficient and faulty due to a design error that required rectification. The decision was upheld in court and there were significant rectification costs.
WHAT DOES PROFESSIONAL INDEMNITY INSURANCE COVER?
Professional Indemnity Insurance will cover:
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Your legal defence – costs incurred defending you in court against claims of professional negligence.
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Compensation – Any sum awarded to cover the cost of rectification of faulty work or any additional compensation awarded by the court.
We offer a range of limits starting from £100K and up to £2M. The Policy Retroactive date (see What does the Policy exclude?) will fall in line with the date you first purchased Professional Indemnity Insurance provided insurance has been held continuously since that date (even if it has been provided by different insurers). If it is the first time you have purchased Professional Indemnity insurance the retroactive date will be the same as the Policy start date.
HOW MUCH WILL IT COST?
The cost of the insurance will depend on your income, number of employees or turnover level, but premiums start at less than £250 for a year’s cover and the cost can be spread monthly with Rhino at no extra cost to you.
You can rest assured that Rhino provides great value insurance, which is not only affordable but also pays out when it’s needed.
Don’t keep pondering how much it will cost, as Rhino can give your business an instant online quote today!
IS IT A LEGAL REQUIREMENT?
Professional indemnity Cover is not a legal requirement. However, the protection this insurance affords is invaluable to most businesses, as it ensures that you are not bankrupted by a professional negligence claim. Also, many businesses, customers or contractors will make it a condition of their contract, so you’ll be more employable once you have it.
WHO IS THE INSURER?
Rhino's Professional Indemnity Insurance is provided by MGAM Limited on behalf of Convex Insurance UK Limited who are a specialist insurance and re-insurance provider. Convex has almost $2billion of market capitalisation and is rated A- (Excellent) by A.M. Best, a well-renowned global rating agency.
