Professional Risks

What Is The Professional Negligence Limitation Period?
What Is The Professional Negligence Limitation Period? 1000 668 James Hallam

If you offer professional services or advice, then you may face a claim of professional negligence. In this case, professional indemnity insurance can cover any legal fees and compensation payments that may arise as a result of the claim.

To ensure you have the cover you need for any claim you might face, it is vital that you take the time to understand how the professional negligence limitation period might affect claims.

What is Professional Negligence?

A professional negligence claim is an accusation that an individual has failed to carry out their responsibilities to the required professional standard, or that they have somehow breached their duty of care.

For example, a solicitor might offer poor legal advice, leading to financial losses or legal troubles for their client. Or it might transpire that a solicitor has a conflict of interest, which could jeopardise a trial leading to costly delays and other losses for all involved.

If any injured parties decide to make a professional negligence claim against this solicitor, then the solicitor may be held liable for all losses. Dedicated professional indemnity insurance would cover the solicitor for these losses, along with any legal fees that may arise as a result of the claim.

For more information on professional negligence, see our full guide to professional negligence and our guide to professional indemnity insurance for solicitors here.

What Is a Professional Negligence Limitation Period?

The limitation period is a specified timeframe in which individuals can make a negligence claim against a professional.

Standard Limitation Period

Under the Limitation Act 1980, the standard limitation period for most civil claims in England and Wales is six years from the date of the alleged negligent act or omission.

Extended Limitation Period

However, this period may be extended if the negligence is not immediately apparent. Individuals may have three years from the date they became aware of the negligence to make a claim.

In any case, no matter when the negligence or omission was discovered, it is not possible to make a professional negligence claim more than 15 years after the date of the alleged negligent act or omission.

When the Standard Limitation Period May Not Apply

The standard limitation period may not apply to certain situations. For example, in cases of alleged continuous negligence, the limitation period may not commence until the professional ceases to carry out negligent acts.

How Professional Negligence Limitation Periods Affect Insurance

The courts are very strict when it comes to limitation periods. If a claim is issued out of time, then it does not stand a chance, even if the claimant has undeniable proof of a professional’s negligence or omissions.

But at the same time, it is important to ensure that your professional indemnity insurance covers you for any claims that may arise relating to incidents from previous years. Depending on the nature of the claim, claimants may be able to make a professional negligence claim up to 15 years following an alleged incident.

Your professional indemnity insurance policy may specify a retroactive date. This is the date from which your insurer has agreed to cover you. If your policy gives you full retroactive cover, then you will have all the cover you need, even for claims relating to incidents that occurred years ago.

For more about retroactive dates, see our full guide to professional indemnity insurance retroactive dates.

Get Specialist Professional Indemnity Insurance From James Hallam

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business.

If you offer professional services and advice, we can advise you on the regulatory requirements concerning professional indemnity insurance, and other forms of cover. We can then help you get the tailored cover you need at a competitive price.

Find out how we can help you today.

What is Social Engineering in Cyber Security? And How To Protect From It
What is Social Engineering in Cyber Security? And How To Protect From It 1000 653 James Hallam

In this post we will explain how social engineering attacks work, and discuss how you can protect your systems against this form of cybercrime.

What is Social Engineering?

Social engineering is a type of cyberattack that relies on the psychology of persuasion to trick people into divulging personal information, or accessing malicious links or attachments.

How Does Social Engineering Work?

Many social engineering attacks start with a cybercriminal communicating directly with their intended target. This might be via an email, a text message, or a telephone call.

The cybercriminal will pretend to be from a trusted organisation, or they may even attempt to impersonate a specific person, such as a manager or an IT consultant. In any case, the aim is to trick the target into taking an intended action. This could be to divulge sensitive information, such as bank details or a password, or to click on a malicious link, or to open a malicious email attachment.

What Happens If You Fall Victim to a Social Engineering Attack?

If someone falls for a social engineering attack, then they may themselves become victims of identity theft or other forms of fraud. But in most cases, the cybercriminal’s aim is to breach a secure system. They may target an employee of a company, for example, in order to access the company’s systems or data. Or they may try to gain entry to an employee’s computer in order to hit the whole company with a ransomware attack.

This is why social engineering attacks can be so dangerous. Cybercriminals can target multiple people in an organisation at the same time. And in order for their attack to be successful, it only needs to work against one person.

The Different Types of Social Engineering Attacks

  • Phishing – This involves sending a message, such as an email, that claims to be from a trusted individual or organisation. The aim is to trick the recipient into divulging sensitive information, or to take some other desired action, such as clicking a link or opening an attachment.
  • Baiting – This might also be referred to as a “watering hole attack”. It involves setting up a fake, malicious website that looks identical to a trusted organisation’s website. Of course, entering your login information on this fake website essentially means that you are sharing your username and password directly with cybercriminals.
  • Physical Social Engineering Attacks – Some social engineering attacks may be more personal. You might get a phone call, apparently from your bank, urging you to share certain information so as to correct some kind of bank error. Or, a cybercriminal may post as an IT support worker, in order to gain direct access to a system.

How To Protect Yourself, Your Employees, and Your Business Against Social Engineering

Social engineering attacks are particularly dangerous as they target the weakest link in any cybersecurity system – people. This means that even the most advanced of cybersecurity systems can still be vulnerable to a social engineering attack.

And as cybercriminals are getting smarter and more sophisticated all the time, even the savviest and most experienced of IT professionals may still fall victim to a social engineering ploy.

Constant vigilance is your best defence against social engineering, underpinned by a robust IT security framework.

Essential Cybersecurity Measures Against Social Engineering Attacks

  • Staff Training – It is essential that you, and everyone else in your business, understands the risks, and the red flags that could suggest that a message or phone call is not what it seems. This training should be tailored to reflect the unique risks that might exist for your organisation, and the specific forms of attack that cybercriminals may attempt to gain access to your system.
  • Password Management – Set clear guidelines on password security, including procedures for when employees should update their passwords, and a strict rule that employees must not share passwords with anyone, at any time.
  • Multi–Factor Authentication – This means that people will need more than one security credential in order to access a system. For instance, employees may have to provide one-time passcodes, as well as biometric information, in addition to their passwords.
  • Zero Trust Security – This is a cybersecurity framework whereby every user must provide credentials at every point of access, without exception. This, combined with multi-factor authentication, will make it much harder for cybercriminals to access your system, even if their social engineering attacks are successful.

How to Respond To Social Engineering Attacks

Your cybersecurity policy should also outline how you respond to a social engineering attack.

Employees should know who to report to, and what actions they should take, if they suspect they have fallen victim to an attack. This might involve changing their passwords or notifying IT staff, who may be able to take appropriate action before it is too late.

This is one area where cyber insurance can make a huge difference. As well as covering your liabilities during a cyberattack, cyber insurance can also cover certain expenses associated with your response, including the costs of notifying clients or customers whose data may have been compromised by a breach.

Read our full guide to how cyber insurance can help protect your business.

Get Tailored Cyber Insurance For Your Business

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you find the cyber insurance you need at the best possible price.

Get in touch for a free quote today.

What is Errors and Omissions (E&O) Insurance & Who Needs It?
What is Errors and Omissions (E&O) Insurance & Who Needs It? 800 534 James Hallam

Errors and Omissions (E&O) insurance is a specific type of professional indemnity insurance that protects you for certain types of liability claims. In this post we will outline what E&O insurance covers and explore which professions could benefit from this type of insurance.

What is Errors and Omissions (E&O) Insurance?

E&O insurance will cover you for claims involving allegations of errors, omissions, or professional negligence. It will also cover you for claims that your services did not meet your client’s expectations, resulting in financial loss.

If a client makes such a claim against you, E&O insurance can cover your legal fees, along with any settlements or compensation payments that may arise.

What is the Difference Between E&O Insurance and Professional Indemnity Insurance?

Professional liability insurance – or professional indemnity insurance as it is known in the UK – is very similar to E&O insurance. In fact, as many professional indemnity insurance policies cover for errors and omissions, some might even use the terms interchangeably.

Both professional indemnity and E&O policies will cover businesses for financial losses arising from errors, or allegations of negligence. E&O insurance policies, though, may be specifically designed to meet the cover requirements of businesses in the technology, finance, and consultancy sectors.

What Does E&O Insurance Cover?

If you provide consultancy services, or if you manage your clients’ finances, then your clients will put a lot of trust into your insights and expertise. If something goes wrong, and your clients make a financial loss, then they might make a claim against you.

This is where your E&O insurance will prove invaluable. If the client’s claim is successful, then your insurance will cover any settlements or compensation they may be due. But crucially, E&O insurance will also cover your legal fees throughout the proceedings.

Even if the client’s claim is unfounded, and even if the court rules in your favour, legal fees can soon ramp up. E&O insurance will give you peace of mind that everything will be covered in the unlikely event of a liability claim from a dissatisfied client.

What Types of Errors and Omissions Are Covered?

An E&O insurance policy might cover claims involving allegations of:

  • Errors or Omissions – As the name suggests, the policy can cover alleged mistakes or oversights that result in financial losses.
  • Negligence – This might include allegations of poor work or misrepresentation, or a failure to meet industry standards. In the creative fields, this could also include cases where you inadvertently breach another business’s intellectual property rights.
  • Defamation – If you make a statement that damages another individual or business’s reputation.
  • Breach of Trust or Contract – If you accidentally break a confidentiality agreement or disclose sensitive information. Or, if you miss deadlines, fail to deliver work, or otherwise breach the terms of your contract.

Who Needs E&O Insurance?

Unlike Professional indemnity insurance, a dedicated E&O insurance policy may be tailored to suit the specific cover and regulatory requirements for businesses in the tech, finance, and consultancy sectors.

This might include any role that involves providing professional services or advice, including:

  • Accountants
  • Financial advisors
  • Software developers
  • Estate agents
  • Law firms
  • Engineers, architects, and surveyors
  • Creative roles, including graphic designers and digital marketers

How To Ensure You Have The Right Level of E&O Insurance Cover

Claims involving allegations of errors and omissions can often prove substantial, especially when you factor in the legal costs.

It is essential to ensure that your E&O insurance policy’s specified limits will cover you for all possible claims. The amount of cover you need will depend on your industry and its regulatory requirements, along with the size of your business, and the types of clients you work with.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you get exactly the right level of E&O insurance cover you need at a competitive price.

Learn more about our professional risks services, or for more information call us on 0207 977 7842 or email paul.mcnally@jameshallam.co.uk

What is a Retroactive Date on Professional Indemnity Insurance?
What is a Retroactive Date on Professional Indemnity Insurance? 1000 664 James Hallam

If you are looking for a professional indemnity insurance policy, then it is vital to ensure that your insurance will cover you for any claims that may be brought against you. The policy’s retroactive date can determine whether or not you are covered for certain claims.

In this post we will explain what a retroactive date is on a professional indemnity insurance policy, and why it matters.

What is a Professional Indemnity Insurance Retroactive Date?

This is the date from which your insurer has agreed to cover you. A professional indemnity insurance policy should specify a retroactive date. Usually, the policy will cover you from the date you took out the insurance. However, some policies may specify an earlier retroactive date, or a later one.

How Does Your Retroactive Date Affect Claims?

Your policy will only cover you for claims arising from work you have undertaken, or advice you have given, after this specified retroactive date. So, when you are taking out a professional indemnity policy, it is crucial to ensure the retroactive date either includes the date you started your business, or the date on which you started a project or contract which may arise in a claim.

Different Types of Retroactive Dates on Professional Indemnity Insurance Policies

Your insurer may refer to your retroactive date in a number of ways:

  • Unlimited Retroactivity – This means that your policy will give you full retroactive cover. You will have cover for any claim you report during your policy period, even if the claim relates to work you carried out, or advice you gave, before you took out the policy. Unlimited retroactivity cover may also be referred to on your policy as “retroactive date: none”.
  • Specified Retroactive Date – Alternatively, your policy may include a specific retroactive date. As we mentioned above, this means you will only have cover for claims arising from work you have undertaken, or advice you have given, after this specified date. You will not be covered for any work you undertook before this date.
  • Retroactive Date Inception (RDI) – This simply means that your cover will commence from the date you took out the policy. You will not be covered for any work you began before you took out the policy.

Why Retroactive Dates Matter For New or When Switching Policies

You should be able to rely on your professional indemnity insurance policy to cover you for any claim your clients may make against you. A specified retroactive date, or an RDI policy, will be fine if your business is just starting out, or if you are getting cover for a specific contract or project.

However, if you are switching policies, or if you are purchasing PI insurance for the first time, then it is important to ensure that there are no gaps in your cover.

Alternative Retroactive Clause, and Avoiding Gaps in PI Cover

Some insurers are a bit more specific with their retroactive date clauses. They may specify that the retroactive date is the earlier date of:

  1. The date you first purchased this specific policy.
  2. The retroactive date specified on the PI insurance policy you had previous to taking out this specific policy.

In short, this means that the insurer expects you to provide evidence that you had professional indemnity insurance in place since you started trading. If you cannot provide this evidence, then your retroactive date will simply be the date you took out insurance from your current provider. This means they will not cover you for any claims arising from before this policy period.

You can contact your previous providers for evidence of your previous policies. But if this is your first PI policy, or if there are gaps in your cover, you can ask your current provider for an earlier retroactive date, or for unlimited retroactivity. Just bear in mind that this may result in higher premiums, and there may also be a one-off premium payment for this policy adjustment.

We Can Help You Ensure Your PI Insurance Covers You For All Claims

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business.

Whether you are just starting out, or you are looking to switch providers, we can help you ensure that your PI insurance covers you for any claim that may be made against you, even if the claim is relating to work you commenced before you took out the insurance.

Learn more about our professional risks insurance services.

What is Professional Negligence, and is it Covered by Indemnity Insurance?
What is Professional Negligence, and is it Covered by Indemnity Insurance? 1000 666 James Hallam

In this post, we’ll explore that professional negligence is, when it can happen and whether professional indemnity insurance can help cover you and your business against claims.

What is Professional Negligence?

Professional negligence essentially means that an individual has failed to carry out their responsibilities to the required professional standard. It can also mean that a professional has breached their duty of care.

In either case, as a result of this poor conduct, a client, customer, or other third party individual may experience a financial loss, or damage to their property, or they may sustain a personal injury.

In such a scenario, the injured party may choose to make a claim of professional negligence. For this claim to be successful, there must be clear evidence that the service they received did not meet the required or expected standards of the profession.

Examples of Professional Negligence

Here are some examples of situations that may result in a professional negligence claim:

  • An accountant makes an error in a tax calculation, resulting in a penalty for a client.
  • A financial advisor offers bad investment advice, and their client makes a loss.
  • A solicitor offers poor legal advice, or they are found to have a conflict of interest.
  • A personal trainer fails to enquire about a client’s prior injuries, resulting in a serious injury during a session.

What is Indemnity Insurance?

Professional indemnity insurance can cover your business for a range of professional mistakes. This can include allegations of professional negligence, and allegations that you have breached your duty of care.

In the event of a professional negligence claim, your professional indemnity insurance can cover any legal fees that may arise, along with any compensation the injured party may be due.

Common Exclusions to Indemnity Insurance Policies

A professional indemnity insurance policy will usually outline a number of exclusions where the cover will not apply. These may include:

  • Intentional acts – The policy will cover you for claims of negligence, but not for claims arising from criminal acts, or intentional
  • Known circumstances – If the policyholder was aware of circumstances that could result in a claim, then they would have to disclose this situation when taking out the policy. If they do not disclose these known circumstances, then any subsequent claims may not be covered.
  • Contractual liabilities – If a liability would not exist without a contract, then an indemnity insurance policy may not cover any claims involving breach of this contract. For example, it would not cover a penalty clause for the late delivery of a project, if it is found that the policyholder agreed to this clause in their contract.

The professional insurance policy may also exclude certain types of damages on the assumption that they would be covered by other liability policies. For example, claims for physical injury or property damage may be covered by a general liability policy, while costs arising from data loss may be covered by cyber liability insurance.

Protecting You And Your Business Against Professional Negligence Claims

As we have seen, professional indemnity insurance can protect your business against professional negligence claims. However, it is important to ensure you have the right level of indemnity cover for your business.

It is also important that you get the right type of indemnity policy for your business.

Types of Professional Indemnity Insurance

Indemnity insurance policies can either provide cover “in the aggregate” or for “any one claim”.

If your policy covers you in the aggregate, then the cover limit will apply to all claims made against you in the policy period.

If the policy covers you for any one claim, you will have the same policy cover limit for an unlimited number of claims in the policy period.

This distinction is important, as a single professional negligence claim could max out your cover limit. If your policy only covers you in the aggregate, then your insurance would not cover you for any subsequent claims.

Read our full guide to choosing the right level of indemnity insurance for your business.

We Can Help You Protect Your Business Against Professional Negligence Claims

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business.

We will take the time to get to know you and your business, so that we can advise you on your specific business insurance and regulatory requirements. We can then help you get the right level of professional indemnity insurance for your business.

Learn more about our professional risks insurance services.

 

What Does Solicitors Professional Indemnity Insurance Cover?
What Does Solicitors Professional Indemnity Insurance Cover? 1000 667 James Hallam

Professional indemnity insurance is an essential form of cover for all solicitors and law firms. In this post we will explain what solicitors professional indemnity insurance covers; to help you understand why you need it.

What Is Professional Indemnity Insurance?

Professional indemnity insurance, sometimes referred to as PI insurance, can cover law firms, along with sole practitioners, partners, and other employees, against claims of negligence, breach of trust or confidentiality, or defamation.

If someone makes a claim against a law firm, professional indemnity insurance can cover any legal costs that arise, plus any compensation payments that may be due. If you or your firm does not have professional indemnity insurance cover, then you or your firm will be liable to cover these costs.

Who Needs Professional Indemnity Insurance?

The Law Society outlines a few scenarios in which you are required to get solicitors professional indemnity insurance:

  • You are a solicitor working in private practice.
  • You work in-house for clients other than your employer, particularly if you provide commercial legal advice services.
  • You work at a law centre, at a charity, or at another non-commercial legal advice service provider.
  • You work for a foreign law firm.

There is no such requirement to get professional indemnity insurance if you only work in-house for your employer (as your employer will most likely have cover in place); or if your firm operates entirely overseas. However, some overseas jurisdictions may impose their own indemnity insurance requirements.

What Does Solicitors Professional Indemnity Insurance Cover?

If one of your clients makes a financial loss as a result of using your service, they may make a claim against you. Professional indemnity insurance can cover you for:

Negligence Claims
For example, a solicitor provides conveyancing services as part of a house purchase, and they neglect to request certain key documents, such as building regulations approval for extensions and renovations. The buyers may ultimately receive a fine for non-compliance with regulations. If so, they could make a claim against their conveyancing solicitors, for failing to properly research the compliance before the sale.

Breach of Trust or Confidentiality Claims
For example, a solicitor may accidentally leave a laptop or another device on a train, which could compromise sensitive client data. This could put clients at risk of data fraud or identity theft. As a result, some clients may make a claim against the solicitor on the grounds of breach of trust or confidentiality.

Defamation Claims
A client may feel that a solicitor has misrepresented them, whether in court or in dealings with other clients. If the client feels that they made a financial or a reputational loss as a result of this alleged defamation, they may make a claim against their solicitor.

Get The Specialist Solicitors Professional Indemnity Insurance You Need From James Hallam

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business.

Whether you are an independent solicitor running a private practice, or you are a director or partner of a law firm, we can advise you on the regulatory requirements concerning professional indemnity insurance, and other forms of cover. We can then help you get the tailored cover you need at a competitive price.

Find out how we can help you today.

What To Look For In Cyber Insurance Cover
What To Look For In Cyber Insurance Cover 1000 666 James Hallam

Every business in every sector should take cyber security seriously. Cyber insurance will offer essential protection during a cyberattack, while also giving you the cover you need to recover from an attack.

Be sure to read our guide to why your business needs cyber insurance.

In this post we will list some key things to look out for in a cyber insurance policy; to help you ensure you get the cover and the support you need for the cyber security risks you face.

Make Sure You Get A Dedicated Cyber Insurance Policy

First, it is important to choose a dedicated, standalone cyber insurance policy, rather than just relying on existing insurance products for cover.

The only way to ensure that you have all the cover you need is to invest in a dedicated cyber insurance policy. This is one area where you simply will not be able to get by with a standard business insurance package.

Does Standard Business Interruption Cover Cyber Attacks?

A standard business interruption insurance policy, for example, won’t cover you for any of the risks associated with a cyberattack, including loss of income while you are unable to trade following a breach. It also won’t cover any legal fees or other expenses that may arise as a result of the cyberattack.

Pay Attention to the Policy Wording on Cover Limits and Exclusions

In particular, you need to pay attention to the policy’s cover limits, and to any specified exclusions.

Cover Limits
The cover limit is the maximum amount your insurer will pay out should you ever make a claim on your cyber insurance policy. A single cyber breach could cost your business thousands. But some cyber attacks carry a much bigger cost. Jaguar Land Rover, for example, recently faced £50m in losses per week as a result of a cyber security breach.

With this in mind, it is best practice to pick a policy offering limits on an ‘any one claim’ basis rather than ‘in the aggregate’. A policy on an ‘any one claim’ basis would be reinstated for each separate claim, meaning you would be covered if you suffered more than one cyber breach during the year you are covered.

Specified Exclusions
Also pay attention to any cover exclusions or conditions. These will vary from policy to policy. It is important to ensure that the policy’s exclusions will not result in any potential gaps in your cover.

Ongoing Support is Everything

The main reason why you need to get a dedicated cyber insurance policy is because only a standalone policy will offer ongoing support during an incident. In fact, when comparing cyber insurance policies, the support you will get during an incident may be a more important consideration than the final settlement you would receive following an incident.

A good cyber insurance policy will include a dedicated support helpline that you could call for support in the event of a cyberbreach or a ransomware attack. This may include assistance in notifying your clients and customers about the breach, and in advising them in action they could take to protect themselves.

The cyber insurance policy may also offer certain risk assessment services. These could help you strengthen your systems in order to make a cyberattack less likely to occur in the first place.

Adequate cover is important. But when it comes to cybercrime, you will need more than a cash settlement following a claim. You should be able to rely on your cyber insurance policy for immediate support the moment you realise that something has gone wrong.

Get Tailored Cyber Insurance For Your Business

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you find the cyber insurance you need at the best possible price.

Get in touch for a free quote today.

What Insurance Does a Recruitment Agency Need?
What Insurance Does a Recruitment Agency Need? 1000 666 James Hallam

Recruitment agencies will contend with many of the same risks as any other business in any other sector. But there are also a number of risks that may be more pronounced or pressing for recruitment agencies.

In this post we will explore the various risks your recruitment agency may face, along with the insurance products that will help you manage and mitigate these risks.

Key Risks For Recruitment Agencies

While recruitment agencies face the same risks as any other business, they also face a very specific set of risks relating to the work they do, including:

  • If an organisation is dissatisfied with an employee you supply, they may make a claim against you on the grounds of negligence, or errors and omissions.
  • An individual could make a similar claim against you, if they feel you misrepresented a position in a listing or an interview.
  • You could also face a negligence claim if you accidentally share confidential client information, either with organisations who are looking for employees, or applicants who are looking for work.
  • While visiting your premises, a client may slip, trip, or fall, resulting in injury, or damage to their property. Or you may accidentally damage a client’s property when visiting their Either situation could result in a compensation claim against you.
  • Cybercriminals may target your business data, either stealing and leaking it outright, or else encrypting it as part of a ransomware attack. As well as the costs associated with data loss and recovery, such a cyberattack could also result in considerable reputational damage.

What Insurance Cover Does a Recruitment Agency need?

There are a number of different types of insurance that recruitment agencies either legally need or would significantly benefit from, including:

  • Professional indemnity insurance
  • Employer’s liability insurance
  • Public liability insurance
  • Business contents and premises insurance
  • Cyber insurance
  • Commercial crime insurance

Below we will explore each of these insurance products with more information and the types of claims they can cover you for.

Professional Indemnity Insurance

Professional indemnity insurance may also be referred to as professional liability insurance. This is cover for any mistakes you or your staff may make in your work, along with any allegations that you may have acted negligently or dishonestly.

As well as covering any financial losses a client may experience as a result of an error, your professional indemnity insurance can also cover your legal fees, along with any financial losses you may incur yourself, such as those associated with lost documents.

Here are some of the claims for which a professional indemnity insurance policy can provide essential cover:

  • Negligence or errors and omissions – such as forgetting to perform or complete a reference check on a candidate, or accidently sharing confidential information.
  • Unintentional intellectual property infringement – such as a claim that your company logo resembles an existing trademark or copyright.
  • Loss of data or documents – such as if an employee accidentally leaves a laptop on a bus or a train.
  • Allegations of dishonesty – such as if a candidate asserts that you misrepresented a role, or if an organisation asserts that you misrepresented a candidate.

Employer’s Liability Insurance

This is one insurance product that you are legally required to have in place. Under the Employer’s Liability Act (1969), if you employ any staff, then you have a legal duty to get insurance for any illnesses, injuries, or other losses or damages an employee may sustain as a result of working for you.

Public Liability Insurance

While employer’s liability insurance can cover your staff for illnesses, injuries, and other damages, public liability insurance can provide similar cover for members of the public. This might include candidates, clients, contractors, delivery drivers, and anyone else who may visit your premises.

As well as covering incidents that occur on your premises, public liability insurance can also cover any losses or damages that you or your employees cause when visiting clients. For example, if you spill a cup of coffee over a client’s computer while meeting them, your public liability insurance can cover the cost of replacing or repairing the device.

Business Contents and Premises Insurance

Business premises insurance can cover your agency’s premises for any loss or damage experienced as a result of fires, floods, break-ins, or other insured events. Meanwhile, contents insurance can cover your equipment for loss or theft, including all of your devices, along with your office furniture, fixtures, and fittings.

Some contents insurance policies will even cover your devices when they are lost or damaged outside of the office.

You should also consider business interruption insurance. If an unexpected event, such as a fire or a flood, ever prevents you from operating your recruitment agency, business interruption insurance can cover your overheads for as long as it takes you and your employees to recover from the setback.

Cyber Insurance

Every business in every sector should be aware of the growing risks of cyberattacks, while taking steps to keep their data and their systems secure. Cyber insurance can cover you for the costs associated with a data breach or a cyberattack, including loss of data, along with your response and recovery from the incident.

For more information, read our full guide to what cyber insurance covers, and why you need it.

Commercial Crime Insurance

While cyber insurance can cover you for the risks posed by third party criminals, commercial crime insurance can cover you for crimes committed by your own employees, including fraud, theft, and embezzlement.

Be sure to read our full guide to commercial crime insurance.

Specialist Insurance For Recruitment Agencies From James Hallam

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We will help you understand the unique risks you face as a recruitment specialist, before helping you access the specialist cover you need at a competitive price.

Find out how we can help you today.

What Level of Professional Indemnity Insurance Do I Need?
What Level of Professional Indemnity Insurance Do I Need? 800 533 James Hallam

When you take out a professional indemnity insurance policy, you will be asked to choose your level of cover. And you might wonder: How much professional indemnity insurance do I need?

In this post we will outline the key considerations that will help you determine what level of professional indemnity insurance is right for you.

What Does Professional Indemnity Insurance Cover?

If you provide specialist services, then professional indemnity insurance will cover you and your clients for any financial losses that may occur as a result of your work.

Most professional indemnity insurance policies will cover claims involving:

  • Negligence and dishonesty
  • Breach of duty of care
  • Breach of intellectual property rights
  • Data loss
  • Breach of confidence
  • Defamation and libel

How to Calculate What Level of Professional Indemnity Insurance You Need

There are a number of key considerations that will help you determine how much professional indemnity insurance you should get, including:

  • The services you provide
  • The sector you work in
  • How much your contracts are worth
  • Legal requirements
  • Type of Professional Indemnity Policy

Below we will outline each of these considerations and how they can affect what level of professional indemnity insurance you need.

What Services Do You Provide?

The services you provide, and the possible risks associated with them, are known as your liability.

Think about what could go wrong, and about how much it would take to fix any issues. But bear in mind that professional indemnity insurance needs to cover legal fees alongside the costs of correcting any issues.

Also consider your turnover. If you work for a large number of smaller clients, then you may be more likely to face a claim than a professional who only manages a handful of clients. But if you do work with a small number of high-value clients, then the potential cost of any claim could be higher.

What Sector Do You Work In?

Some sectors are more tightly regulated than others, which often means that any potential mistakes can be a lot more costly. If you are working in the financial or IT sector, for example, you will likely need more professional indemnity insurance than someone working in graphic design.

Also think about the type of clients you work with. Small businesses may hesitate to make a claim should something go wrong. But large multinational companies will have dedicated legal departments and teams of corporate lawyers. If they feel they have a cause to make a claim against you, then they absolutely will. And their legal fees will not be cheap.

How Much Are Your Contracts Worth?

Consider the average value of your contracts, projects, and fees. Also think about your clients’ expectations. As a result of using your services, are they expecting to cut costs, or boost their revenue?

When it comes to professional indemnity insurance claims, the cost of the claim will rarely be the same as the amount your client paid you. As we outlined above, you may also be liable to pay legal fees. But beyond this, your client may claim for their total loss. In some industries, this can result in a six figure claim.

Do You Have a Legal Requirement to Have Professional Indemnity Insurance?

In some industries, there may be a legal or regulatory requirement to get a certain level of professional indemnity insurance. Accountants, for example, need professional indemnity insurance as a condition of their ACCA membership.

Also, certain clients may implement a contractual requirement to get a certain level of professional indemnity insurance.

What Type of Professional Indemnity Insurance Policy Is It?

Professional indemnity insurance policies can either provide cover “in the aggregate” or for “any one claim”:

  • In the aggregate: This means that the policy’s cover limit will apply to all claims made against you in the policy period.
  • Any one claim: This means that you will have the same policy cover limit for an unlimited number of claims in the policy period.

For example, say you take out £300,000 professional indemnity insurance cover. A client makes a claim against you, resulting in £200,000 of costs. Your policy will cover you for these costs, no matter what type of policy you have.

But what happens if you face more than one claim in the same policy period? If you have an aggregate policy, then you may not have enough to cover you for any subsequent claims. But if you have an any one claim policy, you will have £300,000 worth of cover for every possible claim you face in the policy period.

So, check whether the policy will be in the aggregate, or for any one claim. If it is in the aggregate, and you work in a high-risk industry with high-value contracts, then you may need more professional indemnity insurance cover than you think.

What Level of Professional Indemnity Insurance Do I Need?

In short, you should get as much professional indemnity insurance as you can afford. This is particularly important if you work in a regulated sector, with high value contracts, or with large multinational companies.

Remember that your professional indemnity insurance must cover your client’s legal fees as well as their losses. And remember that you may have to pay for a client’s total loss, and not just the amount they paid you.

Get Advice on Your Insurance Requirements from our Friendly Team

If you are still unsure as to what level of professional indemnity insurance you need, we are here to help. We can advise you on your cover requirements, and we can help you get the cover you need at a competitive price.

Find out how we can help you today.

What Insurance Do Architects Need?
What Insurance Do Architects Need? 1000 667 James Hallam

Whether you are an architect, part of a design firm, or a freelance designer, this post will outline the essential insurance products you should consider if you work in the architecture industry.

Key Risks For Architects and Related Professionals

  • Errors and Omissions – If you make an error in your work, it could lead to some serious problems during the construction process, or afterwards. If these errors result in accident, injury, or financial losses, then someone might make a claim against you.
  • Delays – Delays are common in the architectural industry. Unfortunately, certain delays can result in considerable financial losses. Any financial loss could compromise your business. But if you are liable for the delay, then you may also face some legal action.
  • Accident and Injury – Construction sites can be dangerous. If you or anyone on your firm experiences any accidents or injuries during a site visit, you may face numerous costs, along with significant business downtime.

What Are The Legal Requirements For Insurance For Architects?

For architects in the UK, some forms of insurance cover are either required by UK law, or as a condition of your membership of certain professional bodies.

Professional Liability Insurance

The Architects Registration Board (ARB) and Royal Institute of British Architects (RIBA) require all architects in the UK to get adequate professional indemnity cover.

Professional indemnity insurance will cover you for a number of claims involving:

  • Errors and omission
  • Negligence
  • Copyright infringement
  • Intellectual property infringement

As we mentioned above, if you make an error in your design, someone may make a claim against you on the grounds of negligence. In this case, professional indemnity insurance can cover your legal costs, along with any compensation that may be due.

Employer’s Liability Insurance

All UK employers have a legal obligation to get employer’s liability insurance. This will cover your employees for any accidents and injuries they may experience while working for you, including any incidents that might take place during site visits.

Employer’s liability insurance can also cover conditions that only emerge after employees leave. For example, if an office-based employee develops RSI after years of working for you, then your employer’s liability insurance may cover any compensation they may be due.

Buildings Insurance

Finally, you may be required to get buildings insurance for your business premises as part of your leasing agreement.

This can cover the costs of repairs following fire, flood, vandalism, break-ins, and other specified insured events.

What Other Insurance Products Do Architects Need?

There are other insurance products that all architects should consider, even if you have no legal obligation to do so:

  • Public Liability Insurance – This can cover third parties, such as your clients, tradespeople, and other members of the public, for accidents and injuries they may sustain when interacting with your business in any way. For example, if a client slips or trips during a site visit, public liability insurance can cover any compensation payments and legal fees that may arise.
  • Contents Insurance – This can cover your business equipment for loss, damage, or theft. With this insurance in place, you will be covered for repairs and replacements should anything go wrong, either on your business premises, or during a site visit, or while travelling to and from projects.
  • Business Interruption Insurance – If a fire, flood, theft, or injury ever prevents you from trading, then business interruption insurance can cover all of your overheads for as long as it takes for you, and your business, to recover.
  • Cyber Insurance – Like all businesses, architects should take steps to protect themselves against the risks of cybercrime. In the event of a cyberattack, cyber insurance can cover the costs associated with securing your systems, while also helping you to support any clients that may have been affected by the incident.

Get Dedicated Architects Insurance From James Hallam

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your architectural business.

We will help you understand the unique risks you face as an architect or design firm, and we will help you get the tailored, comprehensive cover you need for total peace of mind.

Find out how we can help you today.

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