Finding the Right Professional Indemnity: A Guide for Freelancers
A suitable Professional Indemnity policy is a key element in protecting your business in the case of a damage event. But with so many offers on the market, how can you identify the right insurance? Our guide will help you find the Professional Indemnity cover that truly fits your needs.
What risks are associated with your work as a freelancer?
When searching for the right coverage, it’s important to look at your business from a different perspective. Think about what could go wrong in the course of your work – and what it could cost you in the worst case. As a self-employed professional, you are personally liable for damages caused to third parties due to negligence. Here are a few examples:
- Data protection breaches
- Violations of competition, trademark, or copyright laws
- Consulting errors
- Missed deadlines
- Planning mistakes
- Programming errors
This list is not exhaustive, and not every point will apply to your business. Be honest with yourself and consider all potential risks – even those that may seem unlikely at first. This also includes the question of where you provide your services. Depending on whether you operate from one country, across Europe, or globally, different risks may arise for your business.
If you're unsure how to approach this, try walking through a typical project in your field. This often makes it easier to spot potential hazards.
What should you know about protecting your business?
In the next step, you’ll need to build a foundation of basic knowledge. Make sure to answer the following questions:
- What is Professional Indemnity Insurance?
- How much does it cost?
- What does Professional Indemnity cover in the case of a damage event?
- Which additional types of coverage might be useful?
You’ll find plenty of insurance know-how on our InfoBase that answers all of these questions for you.
What matters when choosing the right Professional Indemnity as a freelancer?
Now you're well prepared to start looking for the right Professional Indemnity coverage. To avoid being overwhelmed by endless offers on comparison platforms, it’s best to approach the search in a structured way.
- Look for insurers who specialise in coverage for freelancers.
- Search for offers tailored specifically to your industry (e.g. IT, media or consulting).
- Find out whether you can customise your policy using modular options.
This way, you only insure what you truly need and reduce the risk of costly overinsurance. However, that’s not the end of the story. To tailor your coverage even more precisely to your profession, there are several additional aspects you should take into account:
Worldwide Cover:
Does the policy also apply to projects carried out abroad or to work with international clients?
Subsequent Liability:
Even after a project is completed, clients may report a claim months later. Your insurance should still provide protection in such cases.
Subcontractors and Employees:
Even as a self-employed professional, you may not be working alone. In some cases, you might collaborate with subcontractors or employ staff. Your insurance should also cover these parties, as any mistakes on their part could lead to significant financial consequences for you.
Changes in Your Business:
As your business grows, your insurance cover must keep pace. Make sure you understand how your protection is affected if, for example, your revenue increases or you expand your range of services.
Proof of Insurance:
Comprehensive cover is not only important for you, but also for your clients. Make sure you receive official proof of insurance immediately after taking out your policy, so you can present it when required.
With a Professional Indemnity through exali, your business receives exactly the coverage it needs. Your work is protected worldwide, provided you are based in the EU or Switzerland. Errors made by subcontractors and employees are also covered.
Even if your business changes, you’ll have a reliable partner by your side. Find out exactly how this works here: Blanket Coverage: How Professional Indemnity Adapts To Your Business.
Final Steps Before Taking Out Your Policy
Found a suitable offer? Excellent. Can you complete the process entirely online – without tedious paperwork or in-person broker appointments? Even better. Despite all the benefits of digitalisation, personal support should never be overlooked. A reliable insurer offers customer service that is easily reachable by phone or email.
Our customer service team is here for you with extensive expertise. Whether you have questions or are dealing with a claim – we’re by your side and will find a solution together. You can reach our experts Monday to Friday from 9:00 a.m. to 6:00 p.m. (CET) by phone at +49 (0) 821 80 99 46 0 or by email at info@exali.com.
What happens after you’ve taken out your Professional Indemnity policy?
Once you’ve found the right cover for your business, make sure to save all key information – this way, you’ll always have your policy documents, insurance number, and important contacts at hand.
Also, set yourself a reminder for the end of your policy term. This allows you to review whether your insurance cover still suits your needs and, if necessary, plan a switch to a different provider. If you’re considering changing insurers, this article will guide you through the process: Switching Professional Indemnity: Comparison, Cancellation, New Contract.
Vivien Gebhardt is an online editor at exali. She creates content on topics that are of interest to self-employed people, freelancers and entrepreneurs. Her specialties are risks in e-commerce, legal topics and claims that have happened to exali insured freelancers.
She has been a freelance copywriter herself since 2021 and therefore knows from experience what the target group is concerned about.
