Third of Self-Employed Professionals Unaware of the Importance of Indeminity Insurance
Nearly a fifth of self-employed individuals believe that professional indemnity insurance is just for businesses with large number unsure as to what it is
Over a third (34%) of self-employed individuals are unsure of what professional indemnity (PI) insurance is with 19% believing that it was only important to businesses, according to a recent survey by Constructaquote.com.
PI insurance covers against claims that could arise as a result of error, negligence, loss or damage to documents and misuse of data for individuals and businesses which provide professional advice or legal services. The survey, which featured around 2000 self-employed professionals, revealed that while the majority (66%) of respondents were able to effectively convey what PI insurance is; of the third who weren’t 51% had no idea of what it was or if they needed it.
Businesses and freelancers should consider investing in PI insurance if they provide advice to clients; handle data belonging to a client or business; are responsible for a customer’s intellectual property or provide a legal/professional service and could be challenged their work.
Lyndon Wood, founder of constructaquote.com, commented on the report:
“Whilst indemnity insurance is not always a legal requirement for those providing a professional or legal service to undertake, it is worrying that so many polled in our study were unaware of what it is.
“The benefits to those who take the time to invest can be invaluable should you face any unfortunate professional incidents.”