Or how much does it cost not to have the right business insurance?

How much should professional indemnity insurance cost? You might think there should be a simple answer to that question but the reality is that it depends on a number of factors. However, whilst it might be the case that you need to dig a little bit deeper than simple headline rates to find the policy that is best suited to you, it’s also a fact that in most cases you should be able to find it at a highly competitive rate.

So how do you assess professional indemnity insurance cost? First, there’s the issue of your actual profession. Professional indemnity insurers need to be quite clear about what it is that you actually do in order to determine the level of risk that they are underwriting.  And since some professions are more likely to give rise to a claim than others, that will affect your professional indemnity insurance cost.

As will the amount of cover you opt for, the policy limit in other words. Again, you need to consider what it is that you do. Or to be more specific, the types of customer or client you work for. Professionals who work on large, £ multi-million projects are likely to need a far higher level of cover than those who work primarily for small, local businesses. The reason being that the amount of any claim made against professionals in the former group is likely to be far greater than it is for the latter.

And, as you would expect, the more professional indemnity insurance cover you need, the greater the professional indemnity insurance cost.

Work Location is an important factor

Where you work is also an important factor. Obtaining professional indemnity insurance cover for work undertaken in some territories can be far more difficult, and far more expensive, than others. This is particularly true for the USA where the likelihood of a claim being made is far greater, as is the likely size of that claim.

Policy exclusions and policy excesses can also have a significant bearing on professional indemnity insurance cost. Not surprisingly, the more extensive the cover you require (in other words, the more risks that you want to be insured against) and the less you want to pay out of your own resources in the event of a claim, the more expensive the insurance is likely to be. 

So, as you can see, there are a number of factors that need to be considered in answering the question – how much should professional indemnity insurance cost?