Freelancers Insurance - Professional Indemnity Insurance
In todays knowledge driven society, where clients fight to recruit the most talented, highly skilled professionals, the opportunities for freelance consultants are endless. Yes, freelancing can be lucrative and rewarding but its all not all sweets and roses. Why? Because even the most experienced freelancers can find themselves in hot water if their advice / actions cause financial lose to a client.
If things do go wrong and and a professional negligence claim is filed against a freelancer, their life's work and financial future can be put on the line. Saavy freelancers have therefore realised its worth investing in professional indemnity insurance. Not only does PI insurance act as a safety net, funding legal costs and compensation payments in the event of a claim - it also acts as a stamp of credibility and authenticity while soliciting new clients. So why not maintain a policy for the sake of a few pounds a week?
Example's of how professional indemnity claims can arise is given below.
- A graphic designer used a logo from a text book drawing, and was sued for breach of copyright. Compensation awarded was £35,000.
- A marketing consultant printed the wrong contact number in an advertisement and was sued for loss of income and damage to the advertised brand. £40,000 was awarded as compensation. Luckily for the consultant, he had adequate PI insurance to cover the compensation and legal costs.
The reality is that freelancers now work in a hyper litigous business environment and need to implement risk management measures so they can protect their business assets and reputation. Professional indemnity insurance provides freelancers with a financial war chest to fight legal disputes and come out relatively unscathed.
