Take the PANIC out of buying PI
17 Oct 2017
Speak to any seasoned contractor and chances are they’ll be aware of ‘PI Panic’. It happens fast. You successfully land a tempting new contract with an immediate start date. When the paperwork arrives, you notice that you’re expected to present your schedule of Professional Indemnity (PI) insurance. Panic!
Unfortunately many contractors will then go online to buy the first PI policy they come across, with little idea of what it covers or whether it’s a good deal or at the right price.
Panic is not a great strategy for any business process, and PI is no exception. So, let’s take a step back to understand what PI insurance is all about.
Professional Indemnity is a form of business insurance that covers the cost of paying compensation to your clients should they believe you have given them poor service or advice.
You would need PI cover if your advice has gone on to cause damage to a client’s reputation, or lost them money in sales or a corporate partnership. The client in question could be a company or a member of the public – and you could even have given the advice for free.
It’s not an insurance that every company needs. It applies to businesses that offer knowledge, skills or advice as part of their work, and often by a self-employed individual like a consultant, accountant, architect or other professional.
Sometimes you need PI insurance to be a member of a professional body, or to meet new regulation, and often your contract with a client company requires you to have a certain level of cover in place.
So, it’s a pretty important form of insurance to have, and with typical levels of cover at £1m it’s good to know that you have a robust policy that’s worth its premium.
Hammond PI is a specialist provider with more than 20 years’ experience in the field, offering affordable, tailored policies to your line of work. Reassuringly, our experts are on hand to support you should you ever need to make a claim.
A unique ‘quote now, buy later’ service means you can get a quote today then come back and buy in a few quick steps when you need the cover. So, there’s no need to panic.
But if you need cover fast, we’ve taken the pain out buying it - you can nail it in under 2 minutes.