If you’re self-employed, you’ll have to look after all your business and financial affairs yourself - rather than an employer taking the responsibility for this. Having an adequate business insurance policy in place could be crucial. But what happens if the person who hires you decides to sue you for negligence? Are you covered? Would your business survive if you were ordered to pay damages to a disgruntled client?
Don’t leave yourself vulnerable – make sure your business is protected with comprehensive professional indemnity insurance. Make sure any risks associated with being self-employed are fully protected.
Whatever industry you’re in, if you work for yourself you could be at risk of claims against you for:
• Negligence
• Theft of property or money from a client
• Infringement of intellectual property
• Loss or destruction of data or documents
Help protect the financial security of your business and your professional reputation by making sure you and your employees are fully covered with a sufficient PI policy.
Retroactive Cover
With some business insurance providers, it may be possible to backdate your professional indemnity cover (providing there are no outstanding claims against you). This is often referred to as a 'retroactive date'.
For example, if you completed a project a few months ago but didn't have any professional indemnity insurance at that time, you could purchase a professional indemnity policy with a retroactive date to cover the work already carried out.
Claims can take months or even years to be submitted, so retroactive cover is an important feature of professional indemnity insurance.
If you’re due to retire or you plan on winding up your business, make sure you’re also protected for a set period of time after to cater for any subsequent claims that may arise. Before you are accepted for a new policy or you renew an existing one, you may have to declare that you are not aware of any circumstances that could result in a future claim for damages.
In today’s litigious world your business can be exposed to all manner of risks, so it pays to have the best and most comprehensive cover you can afford. If you’re self-employed and you want more information on professional indemnity cover, read our business insurance guides or compare quotes now with Policy Expert.