You may or may not have heard of Professional Indemnity Insurance; but whether you have or not, it is something which should you be sued by a client, you will wish you had very quickly.
WHAT IS IT?
Professional Indemnity Insurance is a component of Business Insurance; vital for businesses, it protects companies who offer advice or services against the risk of a claim being made against them for any mistakes on your part.
So should a client of yours consider you to have carried out the work wrongly, made an error which they consider damaging to their financial state; or if they consider it to have caused damage to their reputation, you could be at risk of a hefty pay out.
The more we become involved with clients and partners in business dealings, the more we expose ourselves to legal claims
The ‘no win, no fee’ nation we live in these days encourages a claims culture with people seeking compensation for the smallest mistake
Therefore, we should always be taking particular care in business anyway, but sometimes even this isn’t enough. You need to keep a guard up with the right cover and take out a comprehensive Professional Indemnity package as part of your Business Insurance policy.
HOW WILL IT PROTECT MY BUSINESS?
If someone does sue your business for Professional Indemnity, you could face legal fees, compensation and any other charges out of your pocket, without Professional Indemnity Insurance.
Levels of cover can range between £50,000 and £2million, highlighting the scale of the importance of getting Professional Indemnity cover to protect your business.
WHO IS IT FOR?
It applies to those providing consultancy or professional advice services; so from financial services, to agencies and designers, etc.
The riskier the business, the higher the insurance premium is likely to be – although the insurer will also take into consideration other factors, such as turnover, number of employees and the type of business
HOW DO I GET IT?
Most insurance companies in Professional Indemnity Insurance can only be accessed by a broker, such as Flint Insurance, who have years of experience in this field.
A broker has a duty to represent your interests; not the interests of the insurance company, so they will research policies to find you the best cover and even tailor make cover if it suits.
The insurance contract is then drawn up between you and a qualifying insurer, not the broker, but the broker will have done all the leg work for you, using their key relationships with specialist insurers to negotiate the best terms.
Motor trade insurance is just like any other; if you are seen to be more low risk and therefore less likely to make a claim, an insurer is more likely to be able to offer you a lower deal. Therefore, anything you can do in order to lower your insurance payments is preferable, and will make you more of an appealing asset to any insurance company.
You can reduce your premium by limiting the number of people and hours you drive vehicles to move them around, as the driving history of those in charge of driving the vehicles may also increase your motor trade insurance plus having a large number of named drivers on the policy. So strip it right back to someone who has a good record and also only those who really need to be on the policy.
Lock it down
The area of your business location is very likely to be a factor in pushing up your motor trade insurance policy – however, no matter where you are based, security is always an important aspect of insurance. So either keep your vehicles in a garage or off the street, and take precautions to put security measures in place to show the insurer that you are locked down and also deter any potential threats through your increased security.
Keep a clean slate
Your driving record, but also your employees’ will also make a huge difference to what you are being charged, so it goes without saying that trying to keep a good account of yourself by driving safely and responsibly is important for your general safety on the roads. But encouraging your employees to do the same and making this something you check when employing someone within your business should be a priority too – as it might reduce your premium.
Set the right indemnity level
Be careful not to over or under insure – as either could prove costly for you in the long run. You don’t want to be just giving away money on your motor trade insurance policy to your insurer, but at the same time you don’t want to find out at a stressful time that you weren’t covered significantly either. Therefore think carefully before setting your indemnity level or…
Seek the advice of your broker
That’s what they’re there for, so make sure to take advantage of their extensive knowledge within this very specialised field and ask them how you can save money on your policy or if they have any insight into any obvious risks your business might pose to an insurer. Asking the right questions from the outset means that you are less likely to find out later on that you could have been covered for various things.
British car sales continue to go against the EU grain
Like any major business sector, motor trade has its booms and slumps – but there is something peculiar (good peculiar) about the UK market at this moment in time.
With an 11.5% sales increase in January, Britain’s motor trade industry looks like its continuing its 2012 momentum throughout Q1 of 2013. However, European sales continue to fall – the rest of the EU took a year-on-year decline of almost 10% in January.
Even Germany suffered a loss of 8.6%. Our home-grown dealerships are already nipping at the heels of their German counterparts – the UK now sits in close-second to Deutschland as the largest auto market in Europe.
So, could the looming introduction of the 13 plate be the impetus behind our island’s success?
Unlucky for Some
The new plates won’t come into play until March, so it has been reported some people are ordering their cars early, to superstitiously avoid the number 13 on their reg.
Still, UK motor trade has been growing over the last 12 months anyway and the realists are seeing the January increase in sales as a natural result of a positive market.
The total figure for car sales in Britain amounted to more than 2 million in 2012. Considering the 2011 total of 1.9 million, the increase of over 5% is significant and it already looks like 2013 will be good year for UK dealers (figures sourced from the Society of Manufacturers and Motor Traders).
It was suggested that an increase in used-car prices may have contributed to more people considering new car incentives. The new Ford Fiesta was the top selling car in the UK and considering you can grab one for under £10k, it comes as no surprise.
Advice for Car Dealers
Every new car forecourt in the country can ride on this momentum and as for the second-hand dealers, it’s a chance to adapt; the auto trade sector is currently enjoying a boom and it is up to the dealers themselves to capitalise on it (superstition isn’t really going to have that much of an impact).
Brokers come into play at this juncture – the experienced ones who have been around for the slumps too. All dealers need motor trade insurance but understandably we Brits need to see value for money (like the Fiesta for example).
So, the brokers go ahead and create a brand new protection package for 2013, designed around the individual applicant’s trading business. Then it’s time to source the best possible motor traders insurance quote. With the protection side of your business taken care of by a professional, not only can you save money, you can completely turn their focus to making the most of a seemingly positive 2013.