Professional Indemnity Insurance Protection for the Self-Employed

Monday, February 4th, 2019 - Uncategorized

A crucial aspect to self employment is the realisation of being in a vulnerable position, which is not a pleasant experience, especially if you need a financial income for you and possibly any family to survive. There is no longer the reassurance of a weekly or monthly salary, or other benefits that accompany an employed and relatively safe person. To put it simply; you are on your own and will have to make all personal and business related decisions yourself.

This includes making provision for any unforeseen crisis that could arise, for example, being sued for negligence by a disenchanted customer and being ordered to pay damages. One of the first crucial decisions you could make would relate to mitigating risk of adversity in this form, by protecting yourself with professional indemnity insurance.

In your capacity as a self-employed person you must consider the following related aspects to your vulnerability!

  • Coverage against claims for negligence
  • Monetary or property theft from a client
  • Infringing intellectual property rights
  • Destruction of important documents or data

It is very easy to convince yourself that this could never happen to you, however, it is an extremely pertinent fact of being self-employed, that this type of occurrence does happen, to anyone, anywhere at any time. No matter the industry in which you apply yourself, if you work for yourself, you are at risk regarding claims made against you. Therefore, secure your livelihood and that of any employees, by having the protection of professional indemnity insurance and the peace of mind it affords you.


Preferential coverage is available to you in certain circumstances, as claims instituted against you could take many months of even years to reach the submission stage. Therefore, your professional indemnity insurance policy should provide retroactive coverage. This would make provision for you deciding to wind-up your business, or to retire, providing you cover for a determined period thereafter, to allow for any subsequent claims made against you. In certain instances, there are insurance providers, specialising in business policies, who may consider backdating your professional indemnity insurance cover. However, this would be with the proviso there are no outstanding claims against you.

This type of cover would be beneficial to you if for example, you had already completed a project, but at that time you did not possess professional indemnity insurance. You could submit an application for coverage today, with the provision that it would be retroactive to extend cover for the work you had already carried out. You must however, keep in mind that before acceptance of your application for a policy, or the renewal of an existing one, you must make a declaration. This is, that as far as you are aware, there are no prevailing circumstances, that could result in future claims arising for damages against you.

Quotes for professional indemnity insurance can be obtained at

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Professional Indemnity Insurance Protection for the Self-Employed | admin | 4.5