Professional indemnity insurance is also known as professional liability insurance and it covers legal expenses and damage costs related to providing inadequate services or advice that cause your customers to lose money.
A professional indemnity policy is a part of body’s regulatory requirements of many industries. Although you are not obliged to have it, you should have it, especially if you have a job that could make you liable for very expensive compensation payments and loss of income in the process of defending yourself.
You are likely to need errors and omissions professional liability insurance Colorado coverage if:
- You are a consultant, contractor or freelancer that provides professional services
- There is a higher risk of mistake or negligence in your work and you want to protect against allegations
- Your client is the one who asked you to have a professional indemnity policy in order to undertake the contract
- Your industry requires you to have it
Some professions are more likely to need this type of insurance, but it doesn`t mean that others should not have it. They include:
- Project engineers, CAD designers, gas engineers and other technical contractors
- Graphic designers, web designers, interior designers and other types of designers
- Business consultants (training consultants, education consultants, marketing consultants etc.)
- Recruitment consultants and agencies
- IT professionals
- Teachers and tutors