Professional Indemnity Insurance for firms working in the Construction Sector, such as builders, electricians or cladding contractors, is designed to protect them against potential financial losses arising from allegations related to errors in their work, incorrect designs or advice given.


Contractors are familiar with buying Public Liability and Employers Liability Insurance, but over the last decade, more and more are being asked to hold Professional Indemnity Insurance, whether it is part of a contract or tender.


Here are some reasons why you may need Professional Indemnity Insurance for your business:


  • Providing advice and consultancy – Clients can claim compensation if you make a mistake in your advice.
  • Providing an expert service – In case of errors in designs, calculations or plans.
  • Handling people’s information – If you accidentally disclose information or violate a client’s legal rights, you could be sued.
  • Clients may insist you have – Some clients require that you have Professional Indemnity Insurance before you start working with them.
  • Could be a requirement – You might be required to have professional indemnity insurance by your professional body or trade association


What it covers


Your Professional Indemnity Insurance protects you from claims for loss or damage resulting from negligent advice or services provided. Even if you provide free service or advice, compensation claims can be made.


Contractor’s Professional Indemnity Insurance policies typically include:


Financial Liability cover – costs awarded against you for a breach of professional duty arising through, for example, negligent design


Defence Costs cover – protection against defence costs with prior written approval from the insurer.


Warranty cover– coverage for claims resulting from warranties, duty of care, or similar agreements that you have offered.


Legislation cover – finances you allocate, with your insurer’s written consent, so you can defend yourself against a claim brought under health and safety legislation.


Fraud cover – protection against your business being held liable for the errors of any employee due to fraud or dishonesty.


Among many types of insurance, Professional Indemnity can be essential to business success.  There is a lot to consider when choosing the right insurance for your business, from what type of policy to select to which provider is best for you.


The BIS team does everything they can to keep you informed about your policy. Every aspect of your policy is explained to you clearly so you know exactly what you need and what your business is protected against. When it comes to Professional Indemnity Insurance, we take the time to understand what services your business provides and the type of cover it will need.

We provide Professional Indemnity Insurance in North Wales, Manchester and Liverpool to keep your company covered. Get in contact with us today.


Llandudno Office: 01492 555 444
Bangor Office: 01248 665 300
Wrexham Office: 01978 804 200
Manchester Office: 0161 870 1183
Liverpool Office: 0151 203 1145
Lancashire Office: 01257 440 250
e: admin@bisinsurance.co.uk