When people strike out by themselves and start up as freelancers and entrepreneurs they leave behind the restrictions of corporate life, but they also operate outside of its safety net. No more back up and support and no more legal protection. If they make a mistake that impacts on one of their new clients they are in the firing line for the consequences.
Pretty much any kind of business that is offering advice or a service can potentially be sued if something goes wrong. If a negligence claim is brought against a professional and they don’t have indemnity insurance they then they are liable for the cost of defending the case and any damages that may be awarded. That’s a very precarious position to be in.
Professional indemnity insurance is a must for anyone looking to start up in business or operate as a freelancer. Many partners and clients will insist that something is in place before agreeing to do business.
The levels of cover for indemnity insurance and the monthly premiums can vary enormously. Many people choose to go through a broker. That way they can get access to the open market and compare quotes from a range of insurance providers. Monthly premium shouldn’t be the only consideration however. People need to make sure that they have the right kind of cover and to the appropriate level. The business environment is challenging and unpredictable enough without having to worry about law suits and damages. Having the right cover in place provides a vital legal safety net.
Getting started in business means ticking off boxes to make sure everything is watertight and above board. With professional indemnity insurance taken care of people are ready to start striking out on their own and making their business work. It’s a small price to pay each month to safeguard against legal disasters.