Professional Indemnity Insurance
Professional indemnity insurance, often referred to as professional liability insurance or errors and omissions insurance in some regions, is designed to cover professionals against claims made by clients due to perceived failures or oversights in their provision of services, advice, or designs. Essentially, it addresses the legal expenses and potential compensation payments that may be required if a client believes that a professional's negligence or misadvice caused them financial or reputational harm.
How does it apply to tech co's?
For startups and scaleup companies, especially those providing technology-based services, consultations, or specialized solutions, professional indemnity insurance is paramount. The fast-paced and ever-evolving nature of the tech sector means that even the most diligent firms can occasionally make mistakes or overlook certain nuances. For instance, a software consultancy could be blamed for a system flaw that results in financial loss for a client, or a digital marketing agency might be held responsible for an advertising strategy that fails to deliver as promised. In such scenarios, the repercussions aren't just about making amends; they can escalate to legal disputes and hefty compensation demands.
Having professional indemnity insurance in place is also frequently a prerequisite when bidding for projects or signing contracts, as clients want assurance that any potential issues arising from the professional services rendered will be addressed. In addition to the tangible financial protection it offers, holding such insurance also enhances a company's credibility in the market. It demonstrates to clients and partners a level of seriousness and commitment to addressing any unforeseen challenges responsibly. For startups and scaleup firms in the professional services sector, securing professional indemnity insurance is thus a dual benefit, offering both risk mitigation and a competitive edge.
Read our comprehensive guide to business insurance trending_flat
How much cover
do you need?
We can provide various limits from £1,000,000 right up to £10,000,000. In some cases, you may even be asked to have more than that as part of a tender or as an agreed contractual obligation.
If you are a member of a professional body it may be worth checking your obligations, otherwise, you can speak to one of our experienced team for an open conversation about your exposure.
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Fuelled is a trading style of European Technology Risks Ltd, who are authorised and regulated by the Financial Conduct Authority under reference number 810317.