Cost of Indemnity insurance small business

entrepreneur01

Hey there,

just wondering if anyone has had any experience with the cost indemnity insurance for small businesses? I'll be shortly starting a coaching business which will involve a small bit of business coaching and a small bit of life coaching mixed together.

I'm sort of hoping it's similar to the price of public liability insurance, but do I just have my head up in the clouds? Have tried to get a quote online, but finding it difficult as they never seem to have what I'm doing listed.

Any advice / thoughts?

pedroeibar1

Why would a life / business coach need 'indemnity insurance'? On what grounds could any customer successfully sue for incurring financial loss as a result of your business?

The Corinthian

pedroeibar1 wrote: »

Why would a life / business coach need 'indemnity insurance'? On what grounds could any customer successfully sue for incurring financial loss as a result of your business?

TBH, I wouldn't rule out someone trying to make a case for it in Ireland.

entrepreneur01

pedroeibar1 wrote: »

Why would a life / business coach need 'indemnity insurance'? On what grounds could any customer successfully sue for incurring financial loss as a result of your business?

Well, I'm going to be honest here, it was recommenced to me by a business mentor who seemed to think I really would need it. Like I said, my business will include a tiny bit of life and business coaching, but will really focus on creating art.

Mrs OBumble

pedroeibar1 wrote: »

Why would a life / business coach need 'indemnity insurance'? On what grounds could any customer successfully sue for incurring financial loss as a result of your business?

It's not about whether they could be successful.

It's about whether they could ruin you financially by giving it a go. Think about what a disgruntled customer who's related to an unemployed lawyer could cost, in terms of legal fees to fight their false claims.

'Tis very easy to see how a life-coach could be sued by the family of a former customer who did some kind of drastic self-harm.

pedroeibar1

entrepreneur01 wrote: »

Well, I'm going to be honest here, it was recommenced to me by a business mentor who seemed to think I really would need it. Like I said, my business will include a tiny bit of life and business coaching, but will really focus on creating art.

I've no idea where your business mentor is coming from on this and would worry about the other advice he has given you if this is a criterion of his/her skills. Similarly some of the earlier responses on this thread are best ignored.

You are talking about professional indemnity insurance. PI is an insurance protection bought by professionals such as lawyers, architects, insurance brokers, IT system designers, etc. to protect them against claims that the work they have carried out for a customer is negligent, contains errors or omissions (E & O is what PI is called in the US) resulting in financial loss to the customer. e.g. an insurance broker incorrectly/negligently advises a customer, who loses money and sues ... PI kicks in. Same with some IT guy designing a new IT system, after delivery it crashes constantly, causes problems from day one, causes a loss to the customer who then sues, PI kicks in.....

PI has absolutely nothing to do with some client with mental issues committing suicide. Actually, that type of zany lawsuit against an individual/ firm usually is covered under the general liability policy.
If you still have concerns you should talk to a good insurance broker (and not some gobdaw who will sell you something just so he can get the commission!) If you are persuaded to go down that road, FWIW the premium for PI is based on your turnover, usually with a minimum premium amount.

pedronomix

I can only agree with Pedroeibar. The advice to get such insurance is completely OTT and sounds to me like the mentor is trying to cover his own ass. Perhaps the mentor had been sued for giving bad advice in the past, which would hardly be a surprise if this is indicative of the advice quality!!

peteb2

To answer probably about €600 depending on the limit of indemnity.

pedroeibar1

peteb2 wrote: »

To answer probably about €600 depending on the limit of indemnity.

Interesting. Where do you see the insurable interest?

peteb2

OP is providing a service for a fee. Regardless of the size of those, they still have an exposure. Even if, as someone stated, it is only for defence costs.

entrepreneur01

Thanks everyone. Plenty of information supplied to me here. I'll get back to this thread again to post what happened with it all, as there seems to be little other information about indemnity insurance in Ireland online.

Also, just to add, I did ring a local insurance broker today for a quickie quote and chat about it all.... the first person I got through to didn't know what indemnity insurance was, he put me through to someone else. He had obviously told her I wanted public liability insurance.....because that's what she was trying to quote me for. I live in a small village in the back arse of no where so I suppose this should be no surprise to me!!

Anyway thanks again and I'll keep going

BrianBoru00

you can get it for around €200 or €250 - worth noting that if you are to be engaged by any public bodies on a contract basis - you will need to have PI.

You'd be surprised at how often this may crop up so it would be wise to have it in place

pedroeibar1

The OP is starting out as

entrepreneur01 wrote: »

..... my business will include a tiny bit of life and business coaching, but will really focus on creating art.

BrianBoru00 wrote: »

if …….engaged by any public bodies on a contract basis - you will need to have PI.

peteb2 wrote: »

OP is providing a service for a fee. Regardless of the size of those, they still have an exposure. Even if, as someone stated, it is only for defence costs.

I wish him/her the best. Hopefully along the way s/he will be the recipient of much State largesse in lifecoaching people through the medium of creative art.
My surprise at those here who do not know the difference between what is covered by a typical small business policy, a general liability policy, professional indemnity and public liability is surpassed only by my amazement at the temerity of those who, purporting to know, post on the thread.

I’ve nothing more to add, except wish the OP “Bonne chance!”