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What is professional indemnity insurance?
Professional Indemnity Insurance offers cover for advice, design or expertise that forms part of a business owner’s professional services. Whether you're a sole trader or own a limited company, Professional Indemnity Insurance will protect you from the cost of claims arising from professional negligence, meaning you can concentrate on the job at hand.
Although you take all precautions to prevent an incident occurring, we all make mistakes, and often the small errors can lead to the biggest costs. Professional Indemnity Insurance protects you against these potentially significant costs, so you don't have to worry about your business having to foot the bill should something untoward happen.
At Rhino Trade Insurance, we offer Professional Indemnity Insurance that can be tailored to your business’s requirements and seamlessly integrated into your existing insurance policy.
- Protection against legal claims and compensation payouts associated with Professional Indemnity
- Cover your business with limits of indemnity from £100k to £1 million
- Our prices start from just £151.20 per year.
WHAT DOES PROFESSIONAL INDEMNITY INSURANCE COVER?
Professional Indemnity Insurance covers a tradesperson for legal costs and damages from claims arising out of negligence, errors, or omissions made by you through your professional services.
With Rhino, your Professional Indemnity Insurance will cover:
- Your legal defence - costs incurred defending you in court against claims of professional negligence.
- Compensation - any sum awarded (up to your chosen level of cover), to cover the cost of rectifying the faulty work, or any additional compensation awarded.
At Rhino, our cover levels range from £100k to £1m, ensuring you can choose the right level of protection for your business.
What could a claim look like?
Claims that fall under a Professional Indemnity policy can be in many shapes and sizes, so having a better idea of when it is required can be very useful.
For example, if you’re an electrician and a client claims that an error in the designs you made for an electrical installation job caused a costly delay in their project, Professional Indemnity Insurance will cover the legal defence costs and compensation awarded, protecting your business from significant financial loss.
How Much Does It Cost?
At Rhino Trade Insurance, we offer Professional Indemnity Insurance with limits of indemnity from £100k to £1m. Our rates start at £12.60* a month, so you can tailor your insurance to fulfil the requirements of your business.
Professional Indemnity Insurance offers protection if you offer advice, guidance, or consultancy services, covering claims made by your clients when your work has negatively impacted them or caused them to lose money. With Rhino Trade Insurance, our affordable and comprehensive cover ensures you stay focused on your work while we handle the rest.
Rhino's Take: Did you know that over 1,300 electricians across the UK trust Rhino Trade Insurance with their business insurance?
*All of our professional indemnity insurance policies must be purchased in conjunction with a Public Liability policy.
WHy do I need PROFESSIONAL INDEMNITY INSURANCE?
Professional Indemnity Insurance allows you to work without worrying about 'what if'. If you offer advice, design work, or guidance as part of your professional services, then this insurance cover can be highly beneficial for you. Whether you are an electrician offering re-wiring consultancy services or a gardener giving a customer landscape advice, having the correct cover in place can be paramount for your business to operate effectively.
No matter how much experience you have, anyone can make a mistake. If you're not properly insured, the responsibility for paying for compensation or legal fees will fall squarely on your shoulders. That's why getting the correct insurance isn't just a formality; it's necessary to safeguard your business and your income against unforeseen events.
By joining Rhino Trade Insurance, you are getting an insurance broker fully focused on the trade industry. We speak to thousands of tradespeople each month, which allows us to offer great policies at competitive rates that are specifically tailored for your line of work.
Wondering how our Professional Indemnity Insurance can protect you? Get a quote today so that you can keep doing what you do best, knowing we've got your back.
Importance of having professional indemnity insurance for tradesman
Having Professional Indemnity Insurance is so important because, as a tradesperson who provides specialist advice and expertise, you never know when a job will turn sour. Sometimes, you get it wrong despite your best efforts, and customers don’t tend to take too kindly when this happens, especially if they’re left out of pocket due to your guidance, design, advice or professional services which have lead to an issue.
A compensation or damage claim usually follows – which will then be up to you to pay for if you don’t have a Professional Indemnity Insurance policy in place. Even if the claimant isn’t awarded anything, the legal fees alone could be thousands of pounds which you’ll be liable for. If there’s compensation or damages to pay on top, then you could be looking at a significant bill.
Professional Indemnity Insurance covers the costs you’ll incur if a customer alleges that you provided faulty advice, and they have suffered a financial loss as a consequence.
With Professional Indemnity Insurance, your insurer will foot the bill for legal costs to a settlement pay out or compensation that must be paid to the claimant (up to your chosen level of indemnity up to £1m).
PROFESSIONAL INDEMNITY INSURANCE (SUMMARY)
- Limits of indemnity available up to £1M
- Competitive rates for many trades including electricians and plumbers
- Option to cover multiple trades
- Instant cover with documents available immediately
- UK telephone support
- Annual and monthly payment options
What add-on policies can I combine with my Professional Indemnity cover?
As a self-employed tradesperson, there are a few policies that you’d likely benefit from having in place alongside your Professional Indemnity Insurance.
These include:
Public Liability Insurance - This insurance policy offers cover against claims arising from damages to third party property, or injuries to members of the public that results from your business’s activities. This is a fundamental policy for any tradesperson, and it must be taken out if you are looking to purchase Professional Indemnity cover.
Employer’s Liability Insurance - If you have any employees, you must purchase Employers Liability Insurance to cover your business under UK Law. This policy provides protection as a business owner against claims of negligence relating to employee’s that become ill, suffer injury, or even death because of their work conditions. It is vital that all employers hold this cover.
Legal Expenses Cover – This policy offers cover for a wind range of legal issues, including health and safety prosecutions, employment disputes, debt recovery, and many more. It also comes with free telephone advice, so you can be sure you are doing the right thing no matter the issue.
Tax Enquiry Insurance – HMRC can investigate your business if they think there are any issues with your taxes, and it can be very difficult to defend yourself if you are wrongly accosted. This policy provides a tax expert who prepares the defence of your business and can represent you when in a dispute with HMRC.
Tools in Transit Cover - You don’t need us to tell you how often tools are stolen from a tradesperson’s vehicle. The truth is, a van is broken into every 23 minutes in the UK, and it is difficult for the police to trace and catch the offenders. Rhino’s Tools in Transit cover offers peace of mind for tradespeople, so you know that you are covered if your Tools are stolen.
Gadget & Mobile Phone Cover – Like a tradesperson’s tools, gadgets & mobile phones allow you to operate your business in the 21st century. Your phone is the key to getting business, so it is vitally important to make sure it is covered in the event of theft, loss, or accidental damage. Rhino’s Gadget & Mobile Phone cover offers just that, and it can be taken out alongside your liability policies easily.
Income Protection Cover - As a self-employed worker, you likely have no protection in place should you become sick or suffer an injury that means you cannot continue to work. Income Protection Cover will give you the financial security to keep your home and business ticking over while you take the time needed to recover. This comes in the form of a monthly pay-out – an absolute lifesaver while you’re unable to earn.
Personal Accident Insurance - An accident which leaves you unable to work for a period of time can be devastating to a self-employed contractor, as you need to be working to be earning. Adding Personal Accident Insurance onto your Professional Indemnity cover could be a smart choice, as it offers a lump-sum payout in the event you suffer an injury as a result of an accident, either at work or in your private life. This can be a lifesaver if others rely on your financial resources when you are fit and working.
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Professional Indemnity Insurance for Tradesman FAQs
As a tradesperson, your work is your best form of advertisement, but everyone makes the odd mistake here or there. If this mistake is caused by your professional negligence, advice that is incorrect, or design work that leads to an issue, you could be held liable for any relating damages.
These claims can quickly grow into major losses, costing thousands of pounds to resolve. No self-employed person wants to find themselves paying legal fees and compensation due to a simple mistake. Professional Indemnity Insurance can offer protection for claims arising from these issues, with Rhino offering cover from a limit of £100k up to a limit of £1m.
These claims can quickly grow into major losses, costing thousands of pounds to resolve. No self-employed person wants to find themselves paying legal fees and compensation due to a simple mistake. Professional Indemnity Insurance can offer protection for claims arising from these issues, with Rhino offering cover from a limit of £100k up to a limit of £1m.
There’s no black-and-white answer to this, so the best thing to do is consider what type of business you’re running and see if Professional Indemnity Insurance would help you in the event of a claim.
You could need Professional Indemnity Insurance if you:
Offer advice/guidance as part of your professional service
Make designs or plans for a job you are undertaking
If a client follows your advice or plans, or uses something you designed which turns out to be wrong and they lose money as a result, you need Professional Indemnity Insurance.
You could need Professional Indemnity Insurance if you:
Offer advice/guidance as part of your professional service
Make designs or plans for a job you are undertaking
If a client follows your advice or plans, or uses something you designed which turns out to be wrong and they lose money as a result, you need Professional Indemnity Insurance.
At Rhino, our cover ranges from limits of £100K up to £1M.
As a general rule, the larger the business, and the broader its scope, the more Professional Indemnity Insurance you’ll need. For example, if you have several employees and your operations include designing electrical installations or giving advice relating to your professional services, then your level of indemnity cover should be higher than someone without any staff and who doesn’t give advice or does design work.
You may also need a certain level of cover for a contract or as a requirement for an accreditation. Check what level of cover you need and get in touch with our team on 0116 243 7904.
As a general rule, the larger the business, and the broader its scope, the more Professional Indemnity Insurance you’ll need. For example, if you have several employees and your operations include designing electrical installations or giving advice relating to your professional services, then your level of indemnity cover should be higher than someone without any staff and who doesn’t give advice or does design work.
You may also need a certain level of cover for a contract or as a requirement for an accreditation. Check what level of cover you need and get in touch with our team on 0116 243 7904.
The general rule for any insurance claim is – let your insurer know as soon as possible if you need to make a claim.
When it comes to Professional Indemnity Insurance, we would suggest you notify us as soon as you have an unhappy client that indicates they might claim against you. You don’t need to have received a formal claim yet to keep us in the loop.
Remember, your Professional Indemnity Insurance must be active when the complaint or issue first arises, and it should have also been in place when you carried out the faulty work that leads to a claim.
You can let us know of a claim or incident that could lead to a claim in 3 ways – by first class post, email, or by telephone. Full details of how to notify us are found in the Policy Wording document available on our website – you’ll also get your own copy when you sign up for a policy with us.
When it comes to Professional Indemnity Insurance, we would suggest you notify us as soon as you have an unhappy client that indicates they might claim against you. You don’t need to have received a formal claim yet to keep us in the loop.
Remember, your Professional Indemnity Insurance must be active when the complaint or issue first arises, and it should have also been in place when you carried out the faulty work that leads to a claim.
You can let us know of a claim or incident that could lead to a claim in 3 ways – by first class post, email, or by telephone. Full details of how to notify us are found in the Policy Wording document available on our website – you’ll also get your own copy when you sign up for a policy with us.
Anything from an incorrect measurement leading to a faulty fitting to advice that leads to the collapse of a weight-bearing wall would come under the umbrella of professional negligence and could be covered under a Professional Indemnity policy.
Our team are on hand to answer any questions you may have about Professional Indemnity Insurance. Why not give us a call today on 0116 243 7904 to talk through any queries you might have?
Our team are on hand to answer any questions you may have about Professional Indemnity Insurance. Why not give us a call today on 0116 243 7904 to talk through any queries you might have?
Although coverage is broad, there are some important things to remember when it comes to claiming on your Professional Indemnity insurance.
Cover must be in place when a complaint or issue first arises and that the work that causes the claim was undertaken after the ‘retroactive date’ of the Policy. The retroactive date is typically the date that Professional Indemnity Insurance was first purchased, provided that it has been held continuously since that date (even if it has been provided by different insurers).
Cover must be in place when a complaint or issue first arises and that the work that causes the claim was undertaken after the ‘retroactive date’ of the Policy. The retroactive date is typically the date that Professional Indemnity Insurance was first purchased, provided that it has been held continuously since that date (even if it has been provided by different insurers).
Rhino can provide cover for a variety of trades, with the exception of some areas that are deemed too high-risk by the insurer. We have listed a few examples of instances where Professional Indemnity Insurance would be needed below:
An electrician designed and completed an installation of emergency lighting that did not comply with the relevant building regulations. The lighting needed to be removed and new lighting re-installed.
An electrician designed and installed a backup generator in a shop. The generator failed, causing damage to frozen foods and impacting the shop’s ability to trade.
An engineer designed and installed a heating system that was alleged to be inefficient and faulty due to a design error that required rectification. The decision was upheld in court, and there were significant rectification costs.
All of these examples would be covered under a Professional Indemnity Insurance policy, potentially saving the policyholders thousands of pounds in legal fees or compensation payouts.
An electrician designed and completed an installation of emergency lighting that did not comply with the relevant building regulations. The lighting needed to be removed and new lighting re-installed.
An electrician designed and installed a backup generator in a shop. The generator failed, causing damage to frozen foods and impacting the shop’s ability to trade.
An engineer designed and installed a heating system that was alleged to be inefficient and faulty due to a design error that required rectification. The decision was upheld in court, and there were significant rectification costs.
All of these examples would be covered under a Professional Indemnity Insurance policy, potentially saving the policyholders thousands of pounds in legal fees or compensation payouts.
It’s sensible to take out Professional Indemnity Insurance if you provide:
Professional advice
Designs or plans
Professional advice
Designs or plans
Unlike with Employer’s Liability Insurance, Professional Indemnity Insurance isn’t something the law requires. However, as a tradesperson, it’s smart to have Professional Indemnity Insurance in place to cover your business in case a claim arises as a result of a customer suffering a loss due to the professional services you have provided.
Sometimes, having Professional Indemnity Insurance will be a condition of a client’s contract with a customer or contractor – so in some cases, you won’t even be hired if you don’t have it. It could also be a requirement if you are registered with a regulatory body for your trade, so it is important to know the limits of indemnity that you require.
Sometimes, having Professional Indemnity Insurance will be a condition of a client’s contract with a customer or contractor – so in some cases, you won’t even be hired if you don’t have it. It could also be a requirement if you are registered with a regulatory body for your trade, so it is important to know the limits of indemnity that you require.
