Case Study Miscellaneous

Professional Indemnity insurance is an important part of many professionals' business risk management. We asked successful professionals in key sectors about their business, and where PI fits into the work they do.

Ann Newsham, freelance HR consultant

What's your background?

I went freelance 18 months ago and have since worked with clients in digital media, law firms, the public sector and education.

When you first set up your business, did you see Professional Indemnity insurance as an integral part of insurance set up costs, or did you buy it later?

I got PI cover about eight months ago as I found I was giving an increasing amount of employment law advice and wanted to make sure that I was covered and that my clients were protected. When you take on an advisory role, particularly in a specialist and sensitive area, it's absolutely essential.

How were you made aware that such cover might be important for the protection of your business?

It was recommended to me by a director of a firm I used to work for. When you work for yourself you're more exposed and it's only sensible to make sure you're protected.

What are the key benefits of PI cover for HR consultants?

In the event that you did make a mistake or were negligent and a client sued you as a consequence, your PI policy would cover the cost of putting it right and your legal fees if it went to court.

What services that you provide are most open to risk?

The information and advice I provide. I have to ensure I give the right advice about any situation governed by employment law and not put my clients at risk.

What are your customers' greatest concerns, and how does PI help protect your reputation?

Clients need to feel confident that I set up the best employment practice structure in their company, abide by the law and ensure that employees are treated as they should be treated. I'm sure that having PI cover does a lot to increase their confidence in me and the service I provide.

What's the most interesting case of a negligence claim you've heard of in your industry?

I remember hearing about a company that employed illegal immigrants. The police were involved, people were let go and deported and it was all extremely messy. But thankfully the law is much tighter on that now which prevents horror stories of this kind.