{"id":2044,"date":"2020-09-02T17:19:48","date_gmt":"2020-09-02T16:19:48","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=2044"},"modified":"2023-10-26T10:51:53","modified_gmt":"2023-10-26T09:51:53","slug":"is-short-term-professional-indemnity-insurance-worth-it","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/is-short-term-professional-indemnity-insurance-worth-it","title":{"rendered":"Is short-term professional indemnity insurance worth it?"},"content":{"rendered":"\n

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\"Short-term<\/figure>\n<\/div>\n\n\n

People often ask us if we do short-term professional indemnity insurance<\/a> policies. And our answer, usually, is yes we do \u2013 with one pretty significant ‘but’.<\/p>\n\n\n\n

So, here it is: you can<\/strong> buy professional indemnity (PI) insurance specifically to cover the length of a contract, but<\/strong> you’re only covered for the time the policy is live<\/em>.<\/p>\n\n\n\n

Put simply, if you cancel the policy after the contract\u2019s finished, it’s as if you never had insurance. Because if a claim is made against you for work you did on that contract after you’ve cancelled your policy, you’re not covered. At all.<\/p>\n\n\n\n

It\u2019s probably worth reading that last paragraph again, just to make sure you got it.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Short-term professional indemnity insurance = long-term risk<\/h2>\n\n\n\n

So, if you think a canny way of cutting costs is to spend as little as you can on, say, three months\u2019 PI cover rather than twelve, think again. The reality is that it could end up costing you far, far more.<\/p>\n\n\n\n

Often, your clients will ask you to have professional indemnity insurance (they might call it professional liability insurance) before you start work for them. Nothing too unusual about that.<\/p>\n\n\n\n

Why? Because professional indemnity is different to other insurance. It\u2019s what\u2019s called a \u2018claims made<\/a>\u2019 policy.<\/p>\n\n\n\n

That means, in simple terms, that means your policy has to be in force at two points for it to cover a claim against you:<\/p>\n\n\n\n