What is Professional Indemnity Insurance?

As a contractor, you may be required to have specific insurance before working on temporary contracts with your end client. Continue reading to discover what Professional Indemnity Insurance is and why you could benefit from having it.

What is Professional Indemnity Insurance?

Professional Indemnity Insurance is there to cover any claims brought against you by a client seeking compensation for any negligence or mistakes resulting in the client suffering financial loss. A professional indemnity policy will cover you against negligence, breach of confidence, defamation and intellectual property infringement claims. It will protect you against the costs of settling the claims and any additional costs or fees incurred.

Not every contractor will require this type of insurance, but it is important for anyone who carries out manual work or designs or has access to confidential client information. Below are examples of professionals who could benefit from professional indemnity insurance:

• Consultants
• Engineers
• Designers
• Architects
• Construction contractors

When you register with an umbrella company, they become your employer, and any claims made against you will be made against the umbrella company and their Professional Indemnity Insurance.

Is it a legal requirement to have Professional Indemnity Insurance?

It is not a legal requirement to have Professional Indemnity Insurance; however, many contractors will still have it just in case, so they are protected should something happen. Some end clients and recruitment agencies will not engage with workers who do not have insurance.

If you provide any service that is relied upon by other businesses or people, it is strongly recommended that you take out professional indemnity insurance. You can also use an umbrella company that includes the insurance as part of the service. Professional Indemnity Insurance covers legal costs and expenses incurred in your defence and any fees or damages that may be awarded if your client claims that you provided inadequate services or advice that caused your client to lose money.

Do umbrella companies offer Professional Indemnity Insurance?

Umbrella companies typically offer three types of insurance as part of their service to cover their workers. Contractors working through Churchill Knight Umbrella, for example, have access to industry-leading coverage, with £10 million Public Liability Insurance, £10 million Employer’s Liability Insurance, and £5 million Professional Indemnity Insurance.

Contractor insurance protects employers and workers in the event of a workplace injury, damage or mishap. Compliant umbrella companies will provide insurance for their employees so they can concentrate on their assignments with complete peace of mind that they have the appropriate insurance coverage.

Contact Churchill Knight Umbrella

Churchill Knight Umbrella offers £25 million insurance cover to all its employees. If you require additional insurance, please get in touch with our Umbrella Customer Service department. In addition to a comprehensive insurance package, when you register for our service, you can benefit from Same Day Faster Payments, dedicated onboarding and customer service teams, employee benefits, Churchill Knight Rewards, and more!

For a free and tailored take-home pay calculation, please call our friendly team on 01707 871622. If you are happy with the calculation and want to join Churchill Knight Umbrella, the registration process is easy, and we’re here to help you every step of the way.