Why buy professional indemnity insurance for trainers?
As an independent training provider you are very much in the business of giving advice for living. And it is exactly this aspect of your profession that could land you in hot water with your clients.
Often training providers mistakenly assume that just because their advice is not directly connected with their client’s financial affairs that they cannot be sued for money. As a result they dismiss this type of insurance as a waste of money.
The truth is that those in the teaching or training profession face many types of claims that can prove very costly. It’s not just the threat of having to pay compensation but more importantly the legal costs associated with rebuffing an accusation.
What does professional indemnity insurance for training providers cover?
It could be something as innocent as cracking an ill considered joke that can lead to a claim against you. More commonly your skills may be called into question when the aspirations of your clients do not materialise and they feel they’re entitled to compensation.
Professional Indemnity Insurance for training providers covers you when a client alleges your error, negligence or bad advice entitles them to a financial remedy.
What type of training is covered?
It would be hard to give a complete list. Your area of expertise is relatively unimportant. You could be providing any or a mixture of the following :
- Training consultancy
- Business training
- Computer training
- Secretarial training
- Management training
- First Aid training
- Apprentice training
As well as other disciplines mentioned above. One of our clients is using his lifelong skills to teach motorbike fixing skills. Motorbike enthusiasts don’t just like to ride, they also like to fiddle with machines and knowing how is rather important.
How does professional indemnity insurance for training providers work?
The most important element of this cover is the legal defence that will be on hand when you are accused of a professional error. An experienced legal representative will advise you very early on what steps to take to minimise the impact on your business.
All the costs are paid by the insurers on your policy. The legal team works with the insurers closely to ensure that the approach they choose is fully covered. You just need to follow their advice.
Should you find yourself having to pay something to your client, the amount will be covered by the insurance but no more than the policy limit. It is therefore important to consider carefully how much professional indemnity insurance you need.
If we take the client who teaches fixing motorbikes as an example, he selected one of the higher limits. He is aware that if his advice leads to a motorbike accident, a possible payout could be substantial.
Do I need any other insurance?
That depends on your exact type of training but public liability insurance can be useful. If you’re reliant on your business equipment to deliver your training then that is a consideration too.
Public liability insurance is designed to protect you against claims of causing accidental injury or property damage. When we say accidental, it means unrelated to the advice you give as part of your business.
It could be something like a trip or fall over the equipment you set up for the training. If you’re using your own or hired premises, there are always risks. Not just to your clients but possibly your clients causing damage to the hired equipment or premises. You might be liable for the cost repair or replacement.
If your business equipment is essential to what you do and you would financially struggle to replace or repair it then insurance is a good backup plan.
