Any contractor, consultant, professional or small business who provides professional advice or designs is open to a claim for damages if things go wrong. Costs could run into the millions.
All ‘claims made’ policies have a retroactive date on their policies, and it’s something very important to consider when purchasing professional indemnity insurance and other liability insurance policies.
Insurance is ultimately about risk transfer. One party (the insurer) agrees to take on the risk of another (the policyholder) in return for some benefit (premium). Business insurance as we know it today began in Mr Edward Lloyd’s coffee house in London in the late 17th century.