Setting up your own business can be hugely rewarding – not only do you get to spend your time doing what you love, but you also get paid for doing it. However, while you have confidence in the high quality of your work, unexpected issues can still arise if a client isn’t entirely happy.
Normally, this is where having protection can help, but in recent months it has become increasingly expensive. According to industry figures, the cost of Professional Indemnity Insurance rose by 21% in 2021 alone and is likely to increase even further.
If you want to protect your business against unexpected issues, while ensuring that you don’t have to pay more than you have to for your premiums, working with a broker can help. Read on to find out more about the rising cost of cover and how we can help you.
One of the best things about working in the creative sector is that you’ve got a nearly limitless scope to be creative. When every project is unique, every day you have new opportunities to challenge yourself.
Of course, this can sometimes be a double-edged sword as creativity is often subjective. While bespoke projects give you plenty of room to be creative, there’s always a chance that your client won’t like the way it turned out.
If this happened, they may want their money back or, in a worst-case scenario, you may even have to defend your professional reputation. In times like these, having Professional Indemnity Insurance can be invaluable as it can cover any costs you incur if you have to take legal action.
Furthermore, it can protect you against allegations of negligence or even breach of copyright. Knowing that you’re fully covered against potential issues like these can be a huge weight off your mind.
While this form of protection can be invaluable, in the past few years its cost has risen sharply. Due to recent economic turbulence, such as the coronavirus pandemic, many insurers have increased the cost of premiums and restricted the cover they offer.
As we discussed in a previous article, the insurance market has been undergoing a process of “hardening” for several years now. In practical terms, this means there is a limited supply of protection products available, meaning that the price of cover has risen sharply.
One of the main reasons is that, according to a report by the Association of British Insurers (ABI), there has been a decline in the number of insurance companies in the UK. As such, there is less competition and so insurers are less willing to offer broad cover.
While this is simply a stage of the market cycle, in the short term this can pose an issue for businesses who are searching for protection. For a start, not only can it be much more difficult to get cover but if you do manage to, you’ll probably also have to pay more for it.
If your business is still establishing itself, having to pay high premiums could mean that you grow more slowly. Since you have less cash, you may not be able to hire new staff and expand as quickly as you want.
On top of that, when your expenses are higher it’s more difficult to build an emergency fund, which can be invaluable if your fledgling business goes through a difficult period.
If you want to find the right protection while ensuring you don’t have to pay more for your premiums than you have to, working with an insurance broker can help.
Knowing that you’ve got the right type of protection can be a huge weight off your mind when you’re growing a business. This is especially true in the creative sector, due to the subjective nature of the work you do every day.
When you work with a broker, they can help you to fully assess your needs and find the cover that’s right for you. This can make the process much simpler and less stressful.
Furthermore, they can compare all the different providers to ensure that not only are you getting the protect that suits your needs, but you also aren’t paying more than you need to. This can give you confidence that your business’s finances are secure, giving you one less thing to worry about.
If you want to know more about how working with a broker can help you to find the cover that’s right for your needs, get in touch. Email email@example.com or use our contact form to request a callback from our team.