Liability – it’s a word that may become a living nightmare for any small business. The Oxford English Dictionary defines liability as the concept of you being legally responsible for something.
The word might assume nightmare proportions because if you are legally responsible for something, it means that anyone who suffers any kind of loss or damage through actions – or inactions – for which you are responsible may claim compensation for the loss or damage they suffer.
Take, for example, the job of the designer. If you present yourself as a professional designer, you are responsible for ensuring the designs you produce work in the way in which they are intended and are free of errors and design flaws.
If that turns out not to be the case, the client for whom you have been working may be faced with a faulty design, the cost of abortive work and the expense of delays in launching the design you had promised.
In light of these significant financial losses, your client may hold you legally liable for the mistakes and errors made and the evidently faulty design you have produced. Because you are legally liable, it is you who needs to account for your client’s losses by potentially paying a substantial sum in compensation.
The financial strain of the compensation you need to pay might impose an intolerable burden on your business – not to mention the significant blow to your professional reputation and the lost orders which are likely to follow.
Designers’ insurance is intended to ease that financial burden by providing the wherewithal for you to meet any such liability claim.
Why choose us?
Indemnity insurance is anything but straight forward. If you want guidance from specialists that can provide your designers’ professional indemnity insurance, we may offer the solution your business needs, thanks to:
- Working in the insurance sector since 1990
- Policies that are underwritten by similarly specialist insurers
- Your direct access to claims agents who understand the business environment in which you are working
- Our UK based contact centre is trained to assist you with your insurance queries
What does designers professional indemnity insurance cover?
There are many walks of life in which professional design services are provided – you might be an engineer, an architect, a fashion designer, a graphic artist or a marine architect designing boats.
Whatever the specific nature of the designs you produce, however, your clients are entitled to rely upon them producing the intended results, with finished projects that work in accordance with the customer’s specifications and free of any kind of design fault.
Not only do you have a professional responsibility for producing designs to these minimum standards, you also bear a legal liability if things go wrong. In other words, if the design errors are your fault, your client is entitled to sue you for compensation for any financial loss.
You may then find yourself paying considerable legal costs and expenses to defend the allegations, and be ordered to pay the damages claimed.
Designers professional indemnity cover ensures that you have the financial wherewithal to meet any such legal costs and any damages which are subsequently awarded to the injured party.
Employers’ liability insurance explained
Some designers work alone, on a sole trader basis, others own and operate a whole design studio of additional employees. If you fall into the latter category, your legal responsibility for the health, safety and welfare of those employees may be clearer still.
The moment you take on any employee, the law requires that you hold a minimum of £5 million employers’ liability insurance in order to ensure that you are in a position to meet any claims from employees who hold you responsible for an injury they sustained at work or an illness or other medical condition they contracted in the course of their employment.
£5 million of cover is the minimum cover required by law. Policies arranged by us here at constructaquote.com, however, go a significant step further by including £10 million of cover as standard.
Public liability insurance explained
From the relative peace and quiet of a design studio, you might be forgiven for thinking that the risk is very remote of your being legally responsible for injuries to or damage to the property of members of the public.
That misconception might prove to be very expensive. Whether it is during the course of a visit to your place of work, during your visit to a customer’s premises or simply whilst you are out and about attending to your business, there is always the risk of an accident resulting in an injury to a member of the public or damage to their property.
If that happens and you are held responsible for the injury or damage caused you may be sued for compensation.
Public liability insurance provides indemnity against such claims – typically of a minimum of £1 million.
At constructaquote.com we enable you to select the levels of protection you require so the policy you choose gives you the cover you need at a competitive price. Why not contact us today to see how we can help?