What insurance might you need?
Professional Indemnity Insurance
One of the most important types of insurance to get in place as a tutor or private teacher is professional indemnity insurance (PI). This is a type of liability insurance that covers you against legal defence costs arising from damages or compensation claims made against you by your clients for a negligent breach of your professional duty.
If that’s hard to imagine that happening to you, think of the following situation:
John’s parents are ambitious people. They ask you to help him prepare for his A levels. Everything seems to be going okay and John is a diligent student with homework always in check. Unfortunately, he fails his exams. Turns out you were teaching him a wrong syllabus for a whole year. It’s something you could have easily checked, but haven’t and in consequence – negligently breached your professional duty.
John’s parents are furious. They’ve paid you considerable fees and hold you responsible for the failure. As a result, they decide to sue you for damages.
As well as being emotionally sapping, any sort of legal action can become very expensive, very quickly. Defending your reputation doesn’t come cheap and solicitor’s bills alone will soon add up. In the event that you lose any action, there is also the cost of damages or compensation to consider.
PI insurance would cover you for the legal costs as well as the compensation costs of any successful action against you.
Public Liability Insurance
If you teach students in your home, their home or other premises that you control such as a private office, you’ll also need to consider public liability insurance.
This protects you should John have tripped over a curled corner of your rug and burned himself with coffee he was carrying or if you somehow spilt something on his laptop and broke it for example.
Employers’ Liability Insurance
There are other forms of insurance that you should consider depending on your circumstances. If you employ other tutors or private teachers, you’re required by law to have employers’ liability insurance cover in place. This protects you against claims costs should those employees get injured or become ill due to work they’ve done for you.