News: What is happening in the PII market?

FreelanceInsure only supply professional indemnity insurance. We are soley concerned with indemnity insurance, which is not affected by the status, training or regulation of those who are insured, but with their liabilities to possible third party claimants.

The liabilities which are insured arise from the provision of specialist advice or of services which require a degree of expertise. Whether or not those who provide such services in a freelance, contractor or consultant basis are to be regarded as members of a profession, their potential liability is sufficiently akin to that of members of what are undoubtedly 'professions' as to fall within the same class of liability insurance.  For simplicity FI group all contractors, freelancers and professionals under the umbrella of professionals.

Growth in a numbers
Since the 1970s the UK has seen a  substantial growth in the numbers of 'professionals' and in the range of professional activity. Increasing prosperity has resulted in more  individuals owning their own homes, which, in turn, need to be  built, extended, renovated,  mortgaged, sold, insured etc.

Improvements in office technology has resulted in increase employee productivity that has created an IT industry of its own that requires expertise. Higher standards of living have increase disposable income and allowed  more people to save and invest. A stronger UK economy leads to company expansion that further leads to a increase in demand for professional services, financial advice, accountancy and legal advice.

Rise in demand for expertise from outsourced workers

With a rise in company demand for expertise from outsourced workers the demand for protection against liabilities and general pitfalls of supplying such advice has increased.

As the number of projects increases so does the number of claims by clients and others against professionals . This increase in the importance of having adequate protection has led to a number of professional bodies setting up statuary requirements that their fellows have adequate protection against a client suffering damages as a result of their work or advice.

For example is a book keeper does not require indemnity protection but a Chartered Accountant does. " Professional indemnity insurance is compulsory for all ICAEW members who have a practising certificate and are engaged in public"

Changes in Insurance Law has reflected in changes in pii polices, inclusions and exclusions and the width of liabilities now covered.