July 31, 2018

What level of Professional Indemnity insurance do I need?

Written by Rob Hartley

Dinghy Co-Founder

This article will help you understand the risks that Professional Indemnity covers, and give you a guide on what limit you should buy.

Choosing your Professional Indemnity insurance limit can be a confusing matter for everyone. There is no right answer to this question, as it depends on the contracts you have and the clients you work for.
The main question you have to ask yourself is “How much damage can I do?!” – not in an angry toddler kind of way, but in a “I’ve made a mistake and stopped an event launching…oh no!” kind of way.

The basic rule of thumb is:

  • How much do you expect to be paid for any contract (as a customer is going to want that back)?
  • How much additional compensation is your client going to need to cover costs of any delays caused by your mistakes?
  • What costs will they need to put things right super fast?!
  • What costs will the lawyers take up to settle your claim?

And then double it.

The go-to amount for most professionals is £1,000,000. Why? Because the initial cost involved in buying the insurance is not much different from £100,000 to £1,000,000 in the overall scheme of things, and for most professionals that will give them peace of mind that they are covered for almost all troubling eventualities.

Minimum Professional Indemnity we offer is £100,000

At Dinghy, we believe that no-one can adequately cover themselves for less than £100,000 Professional Indemnity insurance. With the costs involved in handling a claim, and getting your client back on an even-keel, we don’t believe that this can be achieved without a minimum of £100,000.

In most cases, we find customers will buy more than this, and that’s a sensible thing. With the cost of a Dinghy Professional indemnity insurance £1m limit of around 80p per day, we think that makes sense for most customers also.

So whilst some insurance companies will brag about how cheap an insurance they can offer; always check what limit they offer. If we wanted we could offer a £50,000 limit and boast how low are premiums are – but we think that is irresponsible; and we won’t stoop that low.

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About Rob Hartley

Rob Hartley ACII has worked in insurance for over 17 years in Europe, USA and the Caribbean. He is inspired to improve the image of insurance and bring it back to being a social good. Having also worked as a freelance web developer and an insurance consultant he is passionate about improving insurance for freelancers. In 2017 he co-founded getdinghy.com, a B Corp (pending) insurance provider that specialises in freelancer insurance.

Read more blog posts by Rob Hartley


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