Too much insurance cover?

[Mark81s]

I provide advice via a limited company.

I have:

- Professional indemnity insurance
- Employee and public liability
- Directors and Officers liability

I feel that I have too much cover and am therefore paying too much.

70% of the cost is for the professional indemnity product. So I am seeking people’s thoughts on removing it from the policy. If the business was to be sued then I wouldn’t be too stressed as it has no assets. So the professional indemnity insurance seems pointless as the Directors and Officers liability cover would have me protected.

Your thoughts are welcomed. Thanks.

 

[Mark81s]

P.S I don’t have any professional bodies etc that require me to have professional indemnity cover.

 

[AvantageBroker]

I provide advice via a limited company.

I have:

- Professional indemnity insurance
- Employee and public liability
- Directors and Officers liability

I feel that I have too much cover and am therefore paying too much.

70% of the cost is for the professional indemnity product. So I am seeking people’s thoughts on removing it from the policy. If the business was to be sued then I wouldn’t be too stressed as it has no assets. So the professional indemnity insurance seems pointless as the Directors and Officers liability cover would have me protected.

Your thoughts are welcomed. Thanks.

I would be very careful with regard to your assumption that your D&O policy would automatically protect you. If you were to receive a claim that would ordinarily be covered under a PI policy then your D&O policy would usually exclude the same. Breach of professional duty or matters insurable elsewhere exclusions in D&O policies may leave you covering a potential claim yourself.

I would advise speaking to the insurance broker that you took out the above policies with.

It also sounds like you are the sole employee - if this is the case then may I ask why you have EL cover as this wouldn't be required if my assumption is correct.

 

[Frank the Insurance guy]

Hi @Mark81s

Only Employers Liability Insurance may be legally required (If you have employees etc - Check here if you are unsure if this applies to you.

All other are completely your own decision. Insurance is about the transfer of risk - if you are happy to take on the risk yourself, then its up to you whether you pay for the insurance!

As mentioned above, don't really on your Directors & officers Policy to protect you for claims relating to the services provided - This would only be covered by the Professional Indemnity policy. In short ,the Directors & Officers policy is there to protect you from claims about how you run the business, not the services provided.