Many often wonder why they need Professional Indemnity Insurance in Llandudno, especially contractors. So why is it so important to have? Well, contractors are usually required in some respect to have Professional Indemnity Insurance in place to be allowed on site, but many don’t really understand what it is for. Professional Indemnity Insurance is incredibly important to have in the construction industry and will give you added peace of mind, especially if you are self-employed. 

One of the most common questions revolving around different insurance policies is what’s the difference between Professional Indemnity Insurance and Public Liability Insurance? 

Professional Indemnity Insurance will cover you for intangibles such as financial loss due to poor advice, faulty design or unintentional copyright infringement. It also covers the cost of legal representation and to cover clients loss of income and damages due to professional negligence. 

Public Liability on the other hand covers you against material damage, to both property and injury as a result of negligence from you or one of your employees. If injury or property damage to a third-party is as a result of your business, Public Liability will also cover that too.

What sometimes can be confusing is that Professional Indemnity Insurance can also cover injury. Although it doesn’t cover direct and third-party injury it does cover injury that is as a result of incorrect design or advice. For example, if you provided the structural designs for a property which ended up collapsing due to the faulty design, injuries that are claimed for would be covered by Professional Indemnity Insurance.

There is Professional Indemnity Insurance that is tailored specifically for Construction workers and can be also referred to as Design and Construction Professional Indemnity. This policy is designed to protect contractors and subcontractors against allegations related to errors in their work or incorrect design. 

The policy also covers legal defence costs as well as damage costs, like normal Professional Indemnity Insurance does, however, it is more specialised towards error or incorrect design of a construction project. Standard Professional Indemnity Insurance doesn’t include claims relating to incorrect design, build, maintenance and installation whereas, Design and Construction Professional Indemnity does.