Professional Indemnity Insurance

What is professional indemnity insurance?

Professional Indemnity Insurance will react in circumstances where an error or omission in your services causes, or is alleged to have caused, a third party a financial loss.

As with solicitors and accountants, contractors provide professional advice and services which are relied on by their clients. As a consequence you no doubt act with a reasonable degree of care and skill in order to ensure that your clients' interests are protected.

However, even where care and skill is exercised, there is still the potential for you to make a mistake that causes financial loss to a client or for a client to allege that you have made a mistake even if you have not. Whilst such disputes are rare, when they occur they can be costly.

Carrying Professional Indemnity Insurance will give your clients the reassurance that you have taken reasonable steps to ensure you are covered in the unlikely event of an alleged breach of duty, adding value to any tender.

What Does It Cover?

Professional Indemnity Insurance will cover the policyholder in respect of claims made against them by third parties following an alleged professional error, omission or negligence in the services or advice they have provided.  The policy covers both defence costs and any insured liability found owing in the event of a claim up to the limit of indemnity.

If you provide a professional service and make a mistake, it is possible that a third party may seek to bring legal action against you for a financial loss they claim to have suffered as a consequence – a Professional Indemnity insurance policy is designed to fund the defence of this type of claim and cover the damages for which you may be liable.

In addition to the ‘error, omission or negligence’ claims a client might make, your professional indemnity insurance also provides cover for unintentional breaches of your contract - for example, if you failed to deliver services according to those specified in your contract, perhaps because of a genuine misunderstanding of your duties and obligations in the contract.

Contractor Professional Indemnity Insurance

If you have been contracting for many years and have just changed Professional Indemnity Insurance provider, you should also check to ensure that your past contracts are covered. For all non-IT trades, our Professional Indemnity Insurance policy includes retroactive cover as standard. For IT Contractors, you will need to request retroactive cover for a small additional premium for the risks of past clients claiming against your new contractor Professional Indemnity Insurance.

Please note that there is a €300 excess for any one claim applicable to this policy.

Please see the full Policy Wording below for more information.

Do I Need It?

Professional Indemnity Insurance is not usually a legal requirement for contractors, however, is most commonly a stipulation in standard contracts used by most agencies.

Although the risk of a client making a claim is generally low for most contractors, the cost of a single claim can lead to serious financial pain. On this basis, taking out a contractor professional indemnity insurance policy is commercially prudent and, beyond this, most agencies and clients will also insist you have up-to-date contractor professional indemnity insurance before they award you a contract.

Insurer details

This insurance is provided by HCC International Insurance Company PLC, with registered office at 1 Aldgate, London, EC3N 1RE, United Kingdom.

HCC International Insurance Company PLC is authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and the Financial Conduct Authority (FCA) of the United Kingdom.  HCC International Insurance Company PLC acts by way of its branch in Spain, with registered offices at Torre Diagonal Mar, Josep Plà 2, 10th Floor, 08019 Barcelona, Spain.

In Belgium, HCC International Insurance Company PLC is admitted by the National Bank of Belgium (NBB – Berlaimontlaan 14, 1000 Brussels – www.nbb.be) to conduct its activities under the freedom of services under number 2511.

Policyholders may communicate with the Insurer in English, French or Dutch.

Claims notification information and the Insurer's complaints procedure can be found within the policy documentation.

Insurance Premium Tax

The annual premium applicable for your insurance policy shall be quoted by Qdos inclusive of Insurance Premium Tax.  In Belgium the Insurance Premium Tax rate is 9.25%.