Opinion

Keep Yourself Covered With Professional Indemnity Insurance

If a client thinks they’ve been given a bad service, they can do more than just complain. Whether it’s in good faith or not, they can accuse you of doing a poor job and not pay you. Worse, they can threaten legal action for damages.

For you, there’s more than just a financial risk – your reputation is at stake too. That’s why it’s important to resolve the issue quickly, and that’s why Professional Indemnity insurance is so vital…

Photo by Jason Goodman

What is Professional Indemnity insurance?

It covers legal costs and expenses in case someone claims for financial loss because of your services. That could include if you offer:

  • Advice
  • Designs
  • IT support
  • Construction work

In other words, it could help almost everyone. Say for example you’re providing an IT framework for a major organisation. It doesn’t work as the client expected and now there’s major disruption resulting in cost for the client. Professional Indemnity covers that.

When do I need it?

You need Professional Indemnity the moment you start providing services or offering client consultations. Don’t think this is just for traditional industries either – if someone is relying on you for a product or service, then you need to prepare for the possibility that they could be affected by those services.

Some policies will even offer protection if you suffer interruption as a result of defamation, loss of paperwork and any unintentional breach of confidence. For scale-ups, this is essential – any quiet periods could result in stagnation.

Of course, the immediate benefit is that you get to carry out your work with greater confidence and peace of mind. But it also acts as a sign of a reputable business. If you're raise-ready, some investors may even require you to have it – it shows that you’re thinking ahead and prepared for disgruntled clients.

Photo by Ewan Buck

How we can help

We believe scale-ups should focus less on sourcing insurance, and more on the work that the insurance covers. Fast-moving businesses like yours need cover that can help you grow. And at Capsule, that’s all we offer. We keep you protected as your needs evolve and ensure you’re always with the insurer who meets those needs the best.

To see how our approach can work for your business, get in touch.

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