Appropriate level of Professional Indemnity Insurance?
Thread poster: Derek Taylor

Derek Taylor
United Kingdom
Local time: 17:09
German to English
+ ...
Jun 14, 2014

What level of professional indemnity insurance do people recommend or already have? I don't want the debate of whether it's necessary or not, as I'm taking it out, but not sure on the level of cover that's most suitable.

I would appreciate any suggestions.

Derek


 

LEXpert  Identity Verified
United States
Local time: 11:09
Member (2008)
Croatian to English
+ ...
Considerations Jun 14, 2014

Apart from paying your legal fees in the case you get sued, one of the purposes of liability insurance is to protect your existing assets in the event of a judgement against you, as well to avoid garnishment of future earnings if you have exhausted your assets but not yet satisfied the judgement. Therefore, you should have insurance at least in the amount of any substantial assets (house, car, savings and retirement funds that etc.), which you might be forced to liquidate to pay a judgement against you and/or your legal fees. It also doesn't make sense to insure yourself for an amount that far outweighs what you are trying to protect (millions in coverage if you are only worth 100k, for example), though you would also want to factor in future earnings that could be attached.

The other consideration is your exposure and what the amounts and types of potential damages are. What is your turnover? Do you have direct clients, or outsource any work, or have direct employees who work for you? I would think these increase your exposure. Based on discussions on other fora, one insurer has supposedly told a translator who inquired that most of their losses in the translation E&O line have come from cases where material was sent to the printer with undiscovered translation errors and had to reprinted. That does not exclude the possibility of being sued for other reasons - anybody can be sued for anything.

No one can decide what is right for you. Generally, speaking, for a solo practitioner, I'd say anything under $250k seems inadequate and over a million is probably overkill.


 

Sheila Wilson  Identity Verified
Spain
Local time: 17:09
Member (2007)
English
+ ...
just make sure it will actually pay out Jun 14, 2014

In France and Spain almost all such policies cover only clients in their own countries. I paid for several years before realising I had no cover for the majority of work I did for clients around the world.

 

Giles Watson  Identity Verified
Italy
Local time: 18:09
Italian to English
Sheila is right Jun 14, 2014

Sheila Wilson wrote:

In France and Spain almost all such policies cover only clients in their own countries. I paid for several years before realising I had no cover for the majority of work I did for clients around the world.


A few years ago, I looked into this in Italy.

None of the policies I was offered from reputable Italian companies covered the United States, which accounted for most of the exposure I was wanting to insure. Since then, I have been crossing my fingers, doing without insurance and restricting my US business to publishers I know I can rely on.


 


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