Other considerations when determining how much professional indemnity cover to purchase?
It is worth considering that legal defense costs are on average over half the total cost of the majority of professional indemnity insurance claims. The time spent to defend yours and the insurer's financial interest can be signifciant.
The most commonly purchased professional indemnity amount is £1 million for small businesses because it typically respresents value for money. We recommend you request a couple of different options to appreciate the difference in cost.
You may also have prospective clients that require evidence of how much professional indemnity insurance you purchase. Depending upon the size of the clients you are targeting, may impact your decision making on how much cover you require.
At get indemnity™ we can provide professional indemnity limits from £100,000 to £20 million. Unfortuantely, no one really knows how much professional indemnity you may require until the claim for compensation and legal costs have been added up.
Please note your industry regulator or professional membership may require your business to purchase a specific level of professional indemnity cover. Please seek advice from your specialist insurance broker
to discuss your needs.
This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.