Professional Indemnity
What is Professional Indemnity Insurance?
Kingsbridge Professional Solutions provides contractor professional indemnity insurance, this insurance for freelancers provides cover for the financial consequences of professional negligence, following a breach of professional duty by way of neglect, error or omission.
Why is Professional Indemnity Insurance needed by Freelance Contractors?
As a self-employed contractor professional, the design, advice or specification you provide in the course of your business will be relied upon by others. Any errors or bad advice which you give could lead to financial loss from those relying on your advice. Professional Indemnity insurance includes legal defence costs and any damages awarded. Claims can be made against any company providing professional services.
How does Professional Indemnity Insurance operate?
Professional Indemnity Insurance operates on what is known as a 'claims made' basis. This means that it is the policy in force at the time the claim is notified which will operate, irrespective of when the work was actually undertaken or when the alleged act of negligence took place. Effectively cover needs to be in force at the time a claim is brought against you, so we advise that Professional Indemnity insurance is a long term commitment for Freelance Contractors. It should not be purchased just while you are on assignments or contract, as the cover ends as soon as you cancel or lapse the policy.
Limit of Indemnity
The limit of contractor indemnity insurance is the maximum amount that can be claimed from insurers for the professional's liability to pay claimant damages. Defence costs are usually paid in addition to the limit of indemnity.
Professional Indemnity Insurance operates in one of two ways:
Each and every claim cover - this means that the indemnity limit applies separately to each claim that is made under the policy. However, all claims arising from the same occurrence would be regarded by insurers as one claim.
Aggregate cover - the limit of indemnity would apply as one single amount for all claims made in each period of insurance.
