The Federation of Master Builders

Your essential guide to Professional Indemnity Insurance

Published date: 15 August 2023

When you’re working on a project, you’ll regularly offer advice to your client on various aspects of the build. Whilst you may have good intentions of giving sound advice based on your experience in construction, there are occasions when your client may disagree.

In all walks of professional life, mistakes happen. No matter how careful you are, there is always the possibility that an error could occur and end up costing you. These can have a devastating impact on your company’s finances if you’re not covered.

Should a claim be made against you, Professional Indemnity Insurance can help to protect your business and finances for the future.

 

What is Professional Indemnity Insurance?

This type of insurance is a commercial policy that is designed to protect business owners, freelancers and the self-employed against claims for loss or damage made by clients or third parties, as a result of the impact of negligent services or advice you provided. For example, a client might sue an organisation if they provided incorrect information which then resulted in the client losing money.

 

You can protect yourself against claims for:

  • Injury to anyone on site, such as your employees, contractors, clients, suppliers or visitors.
  • Damage that you may have caused to property, goods and materials, machinery, tools or vehicles.
  • Negligence, mistakes or errors made by you or your employees when supplying services or giving advice.
  • Breach of duty such as failure to complete work that is of an appropriately high standard. 
  • Financial loss that has been caused due to your negligence, advice or services.
  • Loss of data or documents belonging to a client. 
  • Defamation such as making claims about a person and/or business that could damage their reputation.
  • Breach of confidentiality, sharing sensitive information without consent.
  • Providing incorrect information including a casual comment in passing that could count as advice.

 

Why do you need Professional Indemnity Insurance?

You can protect the future of your business with this type of cover, should any type of mistake have a costly impact on one of your clients. So, if you offer specialist advice, services or designs, or deal with data and intellectual property, you could benefit from Professional Indemnity Insurance.

The policy can take care of your legal costs and expenses (subject to terms and conditions) in defending any claims made against you and cover any compensation required to rectify the mistake.

The introduction of The Building Safety Act 2022 means that you could be at more risk to claims from clients and other third parties without quality Professional Indemnity Insurance. So, it’s now more important than ever to invest in business protection.

Whether you have a question about Professional Indemnity Insurance or you’re ready for a quote, contact our team on 01353 652760 today.

 

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Complete construction support

We can manage all of your business protection under one roof, delivering the right policies for the right situations. Our insurance and warranty products include: Latent Defects Insurance, Public and Employers’ Liability Insurance, Professional Indemnity Insurance and more. 

Tel: 01353 652760

Email: [email protected]

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