Buying Professional Indemnity Insurance online – a warning…


I have been reviewing the insurances of a business who buy their Professional Indemnity Insurance online with a very well respected insurance company through one of the most popular web-based small business “brokers”.

Their professional indemnity policy is written on the following basis:

Limit of Indemnity £50,000 any one claim and in the aggregate including defence costs

Not really worth the paper it is written on to be honest. They are saying the most they will pay in a year for all claims is just £50,000. Professional Indemnity claims can be very complex and defence costs rack up quickly. This limit is not enough for one claim including defence costs, let alone for a year.

The minimum limit I would recommend is £250,000 any one claim, excluding defence costs, and depending on what you do that may well be nowhere near enough.

Moral of the story; although it might be a great insurance company, a snazzy website and a great price please make sure you understand exactly what it is you are actually getting when you buy your Professional Indemnity Insurance online. Otherwise when the worst happens and you need to rely on your insurance you may find yourself with a very expensive headache…

Buying Professional Indemnity Insurance online – a warning… contacts

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