Professional Indemnity Insurance

Professional Indemnity insurance provides cover in the event that the policyholder is sued for a breach of their professional duty. The policyholder is indemnified for any damages for which they are found to be liable and, additionally, the representation costs incurred in defending the claim, regardless of the outcome.  Professional Indemnity insurance generally concerns claims of a financial nature, as opposed to bodily injury or property damage.

For the majority, Professional Indemnity insurance is not required at law. This being said, it is standard practice for a freelancer’s contract to include specific clauses requiring any service provider to be covered by a Professional Indemnity insurance policy – frequently a £1m limit of indemnity is also stipulated. 

Holding Professional Indemnity Insurance also aids your IR35 status. It is specifically mentioned in HMRC’s Business Entity Test as being an indicator of self-employment.

Qdos’ Professional Indemnity insurance is written and arranged with limited company contractors in mind, providing cover at a competitive price. Please see a breakdown below:

IT Contractor rates:

To include cover for work carried out in the past, a 20% addition is made to the premiums outlined above.

Other contractor rates:

All rates are subject to satisfactory completion of a short online application and are valid for contractors with annual turnover of less than £250k.  An additional 35% premium is applicable if annual turnover is between £250k and £350k. 

Interest free monthly payments are available; a one-off £12 administration fee is applied for monthly payment.