Insurance: Insider Tips and Facts

3 Steps To Plan Professional Indemnity Insurance For Your PR Consultancy

3 April 2018 by Brian Dunn

If you run a boutique public relations business, a majority of your work is offering professional advice to clients to help them manage and build their reputation. A good reputation is vital to every business and any mistake in your advice could lead to damage. Professional indemnity insurance protects you in case of errors and covers legal costs if a client decides to take you to court. Follow these steps to plan professional indemnity insurance for your PR consultancy.

Consider The Type Of Risks To Your PR Business

Every business comes with different risks, so you must consider the type of risks that could result in clients raising lawsuits against you. For example, perhaps your client is going through an employee death crisis and your advised company statements have made them seem like a heartless employer. This could bring down their share prices if they are a listed company. The company may choose to sue you for any damages to their business. You will also need protection against issues like confidentiality breaches, wrong communication advice, loss of important documents and failure to mitigate potential issues ahead of time.

Get A Competitive Premium Price By Shopping Around

Premiums for professional indemnity insurance are usually calculated based on your turnover and number of employees. This amount could vary between different insurers, so your best option is to shop around for a competitive rate. While all insurers will have a minimum premium, you may be able to negotiate a better deal if you are able to bundle it up with other business insurances like public liability. Once you agree to a premium, keep a track of the market and make sure your insurer passes on any reductions or discounts to you.

Consider The Excess You Are Willing To Pay

Keep in mind that you may have to pay excess, which is the maximum amount you are willing to spend from your own pocket in case a claim arises. Beyond this amount, the insurance company will cover the costs on your behalf. Make sure you talk this through with your insurer and settle on an excess amount you're comfortable with, so that you don't end up paying hefty out-of-pocket sums in the event of a claim. This excess should be detailed in the quotation given to you, and eventually your policy documents.

Running a PR consultancy requires you to protect your business as much as possible. Follow these steps to plan professional indemnity insurance.

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