Hull and the wider Humber region is booming. A recent report by the Humber Local Enterprise Partnership (LEP) revealed that more than 4,000 jobs have been created as a result of its investment programmes. This chimes with statistics that the region’s economic output has risen by 8% cent since 2014 – over 20% higher than the UK’s average rate of 6.6%. Hull’s year as the City of Culture has provided extra momentum to an area that has become a commercial and property hot spot.
New Look Businesses For A New Look Hull
Drilling down into the figures and looking at the sort of new enterprises that are opening makes for interesting, even surprising reading. It would be easy to assume that the growth was being stoked by sectors that Humberside has traditionally been strong in – shipping, agriculture and manufacturing – but much of it is actually being driven by start-up firms, hi-tech and digital firms. According to the 2018 Tech Nation Survey, Hull’s hi-tech and digital sectors grew by 15% in 2017 and they now employ over 4,000 people and have added £578 million to the local economy.
Increasing Opportunities, Increasing Threats
Fantastic as this continued growth is for the city, it brings with it risks; some of which entrepreneurs may not even be aware of. One of the most significant is the threat of legal action arising owing to a company’s actions or the advice it gives. In a business world where the maxim of, ‘if there’s blame, there’s a claim’ has been increasingly taken literally, more and more business owners are finding themselves being dragged through the courts by clients seeking financial compensation as their advice or actions have cost them money.
To combat this problem, more and more firms are taking out professional indemnity insurance cover out so that they will have cover should a problem arise. In the last few years the market for this protection has ballooned. Risks associated with company employees or directors saying the wrong thing on social media, the rise of the service and knowledge economy meaning more and more businesses are giving advice as part of their working life, and the openness of legal firms to pursue action means the risks to firms of all sizes is rising, fast. To give you an indication of the size of the risk from a professional indemnity claim, it’s estimated that 1.5m British businesses now spend over £2bn a year on premiums for this cover so there are obviously a lot of concerned business people out there.
What Can Professional Indemnity Cover Protect A Business From?
There are a range of common issues, including;
- Negligence – mistakes or errors made by you or your employees when giving advice or supplying products or services
- Intellectual property – should you be accused of using someone else’s work or ideas without their permission
- Defamation – which can cover everything from a derogatory email about a client being accidentally seen by them, to a similar comment being posted on social media or elsewhere online
- Loss of documents or data – a serious issue for anyone handling data and an increasingly large problem as cyber-attacks continue to rise
- Breach of duty – that is failure to complete work or give advice that is of an appropriately high standard
Which Businesses Need Professional Indemnity Cover?
Traditionally professional indemnity cover, or PI as it’s also known, was the preserve of large companies or those whose business was centred on advice such as solicitors, lawyers or accountants. These days, however, there are more than 500 different professions that are catered for by PI with organisations ranging from sole traders right the way up to multinationals taking out a policy. Below is a list of some of the types of firms that PI can help protect;
- Private tutors and educational consultants
- Web and software developers
- Independent financial advisors (IFAs)
- Management consultants
- Estate agents
- Recruitment consultants
The list goes on and on…
How Much Cover Do I Need?
The amount of cover you need will largely depend on the size of the contracts you are working with and the size of the company you are working for. If on a day-to-day basis you work with small businesses who are paying you a modest fee, then a £50,000 policy may be sufficient for your needs. If, however, your clients are larger companies then professional indemnity protection of £5m or even higher may be in order. When dealing with large organisations they will often state the amount of cover they need you to have in place.
If you have any doubt as to what you need or would like some advice, then please feel free to contact Coversure Hull and we’ll be happy to discuss matters with you. You can contact us on Hull (01482) 434343 or send us a message by clicking here and we’ll get back to you as soon as possible.
Professional Indemnity Insurance: Can You Afford To Be Without It?
PI is a powerful and versatile policy that can cover organisations of all shapes and sizes from a number of risks – some of which they may not even be aware of. With digital communication making private conversations ever more public and with advice becoming something that almost all businesses give, professional indemnity insurance is something that most cannot afford to be without.
Like Some More Help?
If you’d like to know more about how professional indemnity insurance can help protect your business, then please feel free to contact Coversure Hull and we’ll be happy to discuss matters with you. You can contact us on Hull (01482) 434343 or send us a message by clicking here and we’ll get back to you as soon as possible.