What are the risks for contractors?
Contractors face risks from all angles, whether that’s the risk of injury or the risk of causing financial loss to a customer as a result of some careless advice. Whereas Public Liability insurance is there to protect you if you cause injury to a person or damage someone’s property; Professional Indemnity insurance covers different kinds of risks.
Imagine that you tell your customer that solar panels will save them thousands of pounds each year. They then readily take your advice and install solar panels. After installing the panels, they discover that their house isn’t located in a place that gets much sunlight and they end up having to revert back to standard electricity. Because your advice would have cost them the money to install the solar panels and cost them money to then revert back, you could be held responsible for these costs if a claim is made against you.
Or imagine you provide boiler services and you tell a customer during an inspection that everything is in order and shortly after the boiler falls through the floor because of an ongoing leak that you failed to notice. This is an example of when your professional advice has caused your clients financial loss because they have to pay for the repairs. If they make a claim against you, you will have to pay for the financial damage caused to your customers.
By having a Professional Indemnity Insurance for Contractors policy in place, then any related claim made against you could be covered and you won’t have to worry about costs when a claim is made against you.