Professional Indemnity Insurance
The first, and one of the most important types of insurance to get in place is professional indemnity (PI). This type of liability insurance could cover you against the cost of defending damages or compensation claims your customers could make against you if your negligent service or advice resulted in their financial loss.
As a website designer there are probably two principle risks to worry about.
- Inadvertently breaching professional duty. For example, you might have badly programmed a website for your client, which crashed as a result. Your client could hold you liable for implications of the faulty set-up and costs of fixing it, hence they would expect you to pay out compensation. PI cover could protect you against legal fees you may incur, regardless if the claim is successful or not. If you happen to lose the case, PI can also protect you against compensation you’d need to pay out.
- Inadvertently breaching a copyright could also land you in hot water. PI cover could protect your business by protecting the costs of defending a claim made against you. Remember though to check if the cover is included in your insurance as not all policies automatically cover you against this risk.
Public Liability Insurance
Public liability could protect you against the cost of defending claims for accidental injuries or damages that occurred to a third party because of your negligence. For example, you were at a meeting with a client talking about what you could do to help them refine their website. All seemed to be going well until you knocked over a hot cup of coffee that landed on your client laps burning their legs and damaging their attire. As a result, you’re likely not to be offered to carry out the project, but could be required to pay compensation costs instead.
Employers’ Liability Insurance
The final type of liability insurance is employers’ liability insurance. This is a compulsory form of insurance for anyone that employs any staff, be it temporary, part-time or agency workers. Employers’ liability could cover you for claims should those employees hurt themselves or become ill due to work they did while being employed by you.