Do I need Professional Indemnity Cover?

Yes, if your business offers know-how or skills in a particular field for example if you are a self employed:
Lawyers, accountants and financial advisers are required by law to have professional liability insurance.
Doctors, pharmacists and health care professionals generally daren't practise without it.
Anyone who is in the business of giving professional advice or consultancy services in any capacity whatsoever, whether it's in the health, management consultancy or IT sphere, and who could be sued for making a genuine mistake, needs it.
As litigation becomes more and more prevalent in our society, it's becoming the norm for businesses to opt for this type of cover in addition to or in combination with employers and public liability insurance.

Who needs cover?

Examples of professions which require this type of cover include:

Accountants
Advertising Agents
Architects
Auditors
Authors/Writers
Aviation Professionals
Bookkeepers
Building Contractors
Business Advisors/Consultants
Chartered Surveyors
Computer Consultants
Complementary therapists
Dentists and Dental Consultants
Doctors, Nurses and Medical Professionals
Engineers
Health and Safety Consultants
Graphic Designers
Health & Safety Consultants/Advisors,
Nutritionists
HR Consultants
Hypnotherapists
Insurance Consultants
IT Professionals and Businesses
IT Computer Consultants
Laboratories & Research
Loss Adjusters
Legal Consultants - Solicitors and Lawyers
Management Consultants
Market Research Consultants/Advisors
Marketing & Communications Consultants/Advisors
Mortgage Advisors
Motor Trade Professionals
Office Services/Bookkeepers
Optometrists
PR Consultants/Advisors
Psychologists
Recruitment Consultants
Security Consultants
Sports Agents
Surveyors
Telecom Consultants
Training Consultants
Translators & Interpreters
Web Designers

Some professions carry a higher risk than others eg architects, engineers, surveyors and Independent Financial Advisors. If you work in any of these spheres, then professional liability insurance is a necessity.
Inevitably due to the riskier nature of these professions, insurers will require more information - and premiums will be higher.

Do I need Professional Indemnity Insurance cover?


Yes, if your business offers know-how or skills in a particular field. The type of business that needs professional liability cover are professionals who offer a knowledge-based service or advice such as:

Business consultants
Architects
Solicitors
Accountants
IT specialists - internet service providers, e-commerce businesses, web designers and programmers
Charities and advisory bodies who offer free advice should also consider taking out professional indemnity cover.
Whatever your line of business, you need to be covered when a claim is made, not the date when the mistake was made.
Remember, someone could still make a claim against you, even though you've ceased trading.
Discuss fine details such as this with your broker. Premiums should reduce once you've ceased trading or retired, but you will still have the peace of mind of knowing that you are covered for claims still to come.

Household Insurance - The pitfalls

There are a lot of home insurance pitfalls that you can fall into if you aren't careful. It is critical that you understand your insurance policy and that you know exactly what is covered and what isn't. You also need to know how much coverage you have. The last thing you want is to find out that you don't have the coverage that you thought you did after a disaster. Some of the pitfalls are fairly common so it is a good idea to learn from the mistakes that other people have made. This will help keep you from making the same errors.

The most common home insurance pitfall that people fall into is not having enough coverage. The main reason that they do this is because they don't understand the difference between the value of their home and their possessions and the replacement value. The purpose of home insurance is to allow you to rebuild your home and replace your possessions if they are destroyed. That means that you have to have enough insurance to actually replace your possessions at the current prices. You may have a ten year old television that is worth very little money. However the replacement value of that television is however much a new television is going to cost you. It is important that you understand that and that you base the amount of insurance that you need on the actual replacement costs.

There are lots of different ways that your home can be damaged and not all of them are covered by your home insurance. This is another pitfall that catches a lot of people they fail to check on what is and isn't covered and they don't have the coverage that they need. For example no home insurance policy will cover flood damage; you need to have separate coverage for that. Depending on where you live your home insurance may not cover earthquake or wind damage either. In areas where earth quakes are likely or where wind damage is likely you are going to have to purchase additional coverage to protect yourself from these dangers. The last thing that you want to do is find out after your home has damaged that your home insurance doesn't cover it.

Another pitfall of home insurance is not understanding what parts of your home are and aren't covered. In general a home insurance policy covers the structure of your house and the things inside it. That means that outlying structures and property that is in your yard are not usually covered. The biggest area where this becomes an issue is in the garage. In most cases your garage and the things that are inside it are not covered by your home insurance. Nor are things like landscaping or a gazebo. In most cases you can purchase additional coverage for these things but it is important that you be clear on what is covered and what isn't, the easiest way to do this is to speak to your broker who can deal with the whole process (and will more than likely be able to bring the price down on your existing premium)

Keep Ahead of The Pack!

Businesses are still finding it hard to secure lending as the banks recapitalise, therefore we are being asked to replace our overdraft facilities and loans with finance packages.


How do we protect ourselves???


This is an additional burden for those companies struggling to recover from losing their cover when insurers changed their underwriting approach at the height of the banking crisis. As premiums soared and cover was withdrawn, a substantial number of organisations have been forced into a position where they needed to trade unprotected and uninsured. In addition to loss of cover, these companies lost the benefit of the disciplines and procedures outlined in their credit insurance policy; their guiding principles for credit risk management.
However, there is hope on the horizon, capacity is returning to the market and there has been an increase in the availability of commercially acceptable terms. Rates have stabilised and Insurers are now writing more business and agreeing cover on a ‘business by business’ basis.
Insurers have developed more sophisticated risk assessment techniques however, as they have adopted more stringent underwriting, they are also demanding that firms provide a more comprehensive financial picture.
Now, more than ever, companies need an experienced broker to help them meet the Insurer’s requirements and obtain the cover they need to protect their business. For many businesses, the crisis in credit insurance has highlighted the benefits that a comprehensive credit management programme can deliver. Credit Management is not just about an insurance policy. The right combination of cover and credit management services can help businesses to establish effective credit control systems and disciplines that can help businesses grow and prosper as well as minimizing the risk of bad debt.

Public Liability Insurance - The What's and Why's

There aren't many types of business that can justify not taking out public liability insurance. Business, by its very nature involves contact with people outside of a company and it is these people or ‘third parties’ that public liability seeks to protect.

So, what does public liability insurance cover?
If your business is responsible for injuring a member of the public or ‘third party’ (i.e. not an employee of your business) or for damage or destruction of their property, public liability insurance would cover you for any related costs, such as compensation payouts, the cost of repairing damage, or legal expenses incurred in defending the case.

Why is public liability insurance necessary?
This type of insurance is there to protect your business from unexpected financial loss. Public liability claims have the potential to run into the thousands and your business may not have the finance to cover that cost.
Accidents can, and do, happen at any time and it could be something very simple or something really serious. For example, you might spill your coffee on a client's computer and damage it, or someone might trip on a piece of your equipment or slip on your wet floor. On the more serious side, your faulty workmanship might cause a flood or fire, or you could be responsible for a life-threatening injury.
If you were found liable for such an incident, you would end up facing a financial claim that could potentially cripple your business. Public liability protects your business from a financial standpoint and it protects the interests of public by ensuring they can claim appropriate compensation.

How much public liability cover will I need?
The level of cover you will need depends on the risks involved with your business. You can take as little as £2 million if your business has little interaction with the public or as much as £10 million if your business is high risk or involved with government contracts. Certain business types might be subject to certain requirements by clients, for example a DJ would need to make sure he or she has the correct level of cover required by a venue.

How can I get a good deal?
You can buy public liability insurance as part of a single policy which can also include other covers relevant to your business.
Premiums for business insurance can vary widely and depend on what is included and excluded in the policy. The best way to obtain a good and honest quote is to approach your local broker who has all the tools to give you the very best advice.

Business Has Moved On and Your Cover Should Too!

As the nature of modern business matures and we continue to live in a ‘blame culture’, we should all now consider the possibility that our current cover may not be adequate. There are constantly new products which enter the marketplace, usually after some unfortunate individual or organistaion has had the misfortune to endure a loss. We at Northcott Beaton Ltd have explored the possibilities.

Whether we like it or not, business is a cut throat game and there are always “hazards"just waiting to catch us out. Some of these ”hazards” are avoidable and others just occur when you least expect, and need, it to happen. It is therefore imperative that, when this happens, you have the necessary cover in place to ensure that any financial loss incurred can be reimbursed in the form of an insurance claim.

You can approach this one of two ways:

1.         You can trawl the internet for deals, go on comparison websites or call your current insurer to try to get a better rate . . .OR …
2. You can call your local broker who, not only has access to a much wider variety of products, has the benefit of experience in what cover you will need, will probably be able to get you a cheaper quote and will be able to visit your premises to ensure that no stone is left unturned. This makes the possibility of a nasty surprise, an impossibility.