Whether you are an accountant, bookkeeper, or architect, professional indemnity insurance can protect you from a range of scenarios. It can cover the cost of compensation for damage, loss of data, and legal fees. It can also protect you from the consequences of a dishonest employee.

The amount of professional indemnity insurance you need will depend on your business, and the risks involved. Some professions are considered higher risk than others. For example, you may need to get cover if you provide advice to clients.

You may also need to take out cover if you have a work vehicle or toolbox. You should check with your insurance provider to find out how much cover you need.

Some professional indemnity insurance is specifically designed for sole traders. You may not be able to work with a full licence if you do not have insurance.

Some of the risks sole traders face include theft and accident. You can cover your tools and vehicles with commercial motor insurance. If you are self-employed, you may also need income protection insurance. This insurance can replace up to 70% of your income in the event of a total or permanent disability.

Some professional indemnity insurance may also cover you for damages if you infringe someone’s copyright or intellectual property. If you provide designs for your clients, you should also consider getting cover.

When choosing professional indemnity insurance, it is important to map out the worst-case scenarios. How much is it likely to cost you to make a claim?