insurance


Do you need cover?


Samantha Downes looks at the benefits of professional indemnity insurance


P


rofessional indemnity (PI) cover is standard among some professions. According to the Association of


British Insurers, solicitors, accountants, architects, surveyors and financial advisers cannot conduct business without this type of cover. Among the creative industries, PI is not essential, although large advertising, design and public relations agencies will have PI cover in place. Journalists are not legally required to


have professional indemnity, nor its sister, public liability cover. Most staff journalists will fall under


the legal umbrella of their employer should their work be subject to legal action. But freelances won’t be, which is where PI cover may prove useful, particularly if they combine their journalism with corporate or commercial work.


‘Broad and meaty’ Ashley Baxter, a photographer and founder of freelance insurance provider With Jack, says PI was for when a client threatens legal action or tries to recover monetary damages as a result of their professional services. “This could be advice the freelance


has given or the work they’ve provided. Maybe they’ve delivered work late, maybe they haven’t met the client’s expectations.” Baxter says PI is ‘incredibly broad and meaty’, and gives the example of a filmmaker who was sued by a


company when faulty equipment wiped out their work. The insurer paid out full costs which


would otherwise have amounted to £9,000 coming out of the freelances’ own pocket. Baxter says these cases are rare and most claims tend to arise from project management issues. Clients may insist their freelances


have PI cover, so if the freelancer makes a mistake, they can recover any money lost. “For example – and this is a true story – a graphic designer can be hired for a job for £2,000, but if packaging they’ve designed has gone to print with a mistake that needs to be rectified, this can cost £20,000 to fix.”


What does professional indemnity cover? Baxter says PI covers defamation, libel and slander. “We have one such claim ongoing where a writer published something online and they are now being accused of defamation. “So far, there have been no monetary damages accompanied with the defamation claim, but the fact the third party has resorted to involving their legal team in a bid to have the writer remove what they’ve written means the freelancer’s insurance has been triggered.”


Buy professional indemnity cover through the NUJ The NUJ has an arrangement with Jensten which offers a specialist professional indemnity insurance for freelance writers and covers areas such as defamation, breach of copyright, breach of confidence and privacy. It also contains public liability insurance. It offers a 12.5 per


cent discount to NUJ members: https:// tinyurl.com/mr49fusz


What about public liability cover?


Often confused with PI cover, public liability pays out for legal claims around physical accidents and injuries to third parties, Baxter says: “We’ve been operating for eight years and have yet to have a public liability claim made against any of our customers but that’s because we work with freelance creatives. “They’re low risk when it comes to


accidents and injuries because they’re not operating heavy machinery. “The good news is that journalists


may not necessarily need public liability – but lots of clients require freelancers to have public liability and it’s super cheap.”


The cost of PI and public liability is in a range of £10–£30 a month. “This depends on the level of cover, and can increase if you need to cover US work.”


Professional indemnity versus public liability PI is offered on a claims-made basis so the insurer will cover you only for claims made while you hold the policy.


So if a claim is made against you


after your policy has expired – even if the incident occurred while your policy was in place – you will not be covered. New claims can be brought against you for up to six years after an alleged negligent act.


Public liability covers claims made by members of the public and covers personal injuries, loss of or damage to property and death. It also covers incidents on your business premises. Therefore, if you work from home and receive visitors in the course of this, you may need public liability insurance. If you have employees you will also need employers’ liability insurance.


Where to buy cover Along with the NUJ’s offer, you can buy public liability insurance directly from an insurer or from a specialist broker through the British Insurers’ Brokers Association.


16 | theJournalist


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28