Professional Indemnity
An increasing number of claims are being made against corporate and freelance professionals by dissatisfied customers who are seeking financial compensation as a result of neglect, errors or omissions – mistakes that are all too easy to make, particularly when you’re juggling a number of projects at a time.
These claims are also getting larger, posing a significant threat to the livelihoods and futures of the company's freelancers involved.
UK Solicitors – Professional Indemnity Programme
Lemma Europe is an approved insurer for the Solicitors Regulatory Authority Scheme - download qualifying insurers list
Our Professional Indemnity programme provides indemnity for claims of up to £3m and gives you full cover against:
- Libel and slander
- Loss of documents
- Negligence or breach of a duty of professional care
- Infringement of intellectual property rights
- Dishonesty of employees
- Fidelity
- Unintentional breach of confidence
What does the professional indemnity insurance cover provide?
- Defence costs and awards should a client allege that his business has suffered due to your negligence
- Many clients will only engage your services once you have provided evidence of insurance
- If you employ sub contractors it is essential that you check their professional indemnity insurance before you engage them
Our Recommendations
Ensure you are properly insured from Day One
- You need to have professional indemnity insurance in place the day you start your business
- Professional indemnity insurance policies are issued on a "Claims Made" basis. This means that a claim made years after the alleged negligence will be met by the current policy and not the policy which was in force at the time of the alleged mistake
- It is essential to ensure that the "Retroactive Date" shown in your current professional indemnity insurance policy is the commencement date of your business and not the inception date of the current policy
- Most underwriters will only provide retroactive cover if all previous years have been insured
- When you close your business or retire, you will need to arrange "run off" insurance cover for several years afterwards
Keep everything well documented
- Set out your responsibilities in a contract with your client before you start work
- Keep copies of all instructions, modifications and complaints
- Notify your insurers immediately you receive a complaint or intimation of an allegation of negligence, even if you believe the allegation to be groundless
For any enquiries about our Professional Indemnity insurance please contact info@lemma-insurance.eu
