Why do virtual assistants need insurance?
Virtual assistants handle personal data, and have access to bank and credit card details, passwords, and other information that—if lost—could potentially harm a client’s business, security, and/or finances.
Many clients won’t use virtual assistance who don’t have insurance
Certain types of business insurance are a must in the professional world and as a virtual assistant, you’re likely to present evidence of such insurance.
Breach of confidentiality claims
If you revealed sensitive information about your client’s business which affected their financial situation, it may lead to a breach of confidentiality claim against you.
Accusation of inappropriate conduct
If you’re handling communications on behalf of a client (emails, social media, and similar), you may be accused of upsetting a business partner or a potential customer and therefore asked to pay for the financial losses incurred.
Failing your duty of care
As a virtual assistant you look after certain areas of your client’s business or lives. Dropping the ball can happen to everyone, but sometimes a client may decide to sue if they believe they suffered financial harm as a result of your work.
Professional indemnity insurance for virtual assistants
Professional indemnity insurance covers the cost of defending you or your business against allegations of professional negligence, such as giving your client incorrect advice or failing your duty of care. This insurance is a necessity for virtual assistance businesses.
What does professional indemnity insurance for virtual assistants cover?
Professional indemnity insurance protects virtual assistants from claims or accusations of wrongdoing resulting from their professional advice.
Cover includes:
- Failing your duty of care
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example, you may be facing financial demands from a client because:
- You were tasked to organise an important event and forgot
- Your sent sensitive information to the wrong person
- Your communication led to claims against your client
What professional indemnity limit do virtual assistants need?
Many clients that you work with will require you to have a minimum level of cover in order for you to undertake a contract. Always check first before you arrange cover.
If you're not sure, or buying virtual assistant business insurance for the first time, consider the extent of your work and think of the worst-case scenarios. What would be the estimated costs to put your mistakes right?
Switching your professional indemnity insurance
If you’re shopping around and possibly considering leaving your current insurer, remember that you may no longer make claims against that policy.
If you change your insurance provider, ensure your past work is covered under your new policy. This is called “retroactive cover”.
Should I keep professional indemnity insurance if I stop providing virtual assistant services?
It’s wise to keep your professional indemnity if you pause or stop your virtual assistant activities. Claims against professional misconduct can surface months or years after you do the work.
How long you keep your cover in place is up to you; consider the type of work you did and the likelihood that a client might bring a claim against you.
Public liability insurance for virtual assistants
By definition, virtual assistants work remotely and almost never spend any face-to-face time with their clients.
Public liability insurance covers risks associated with face-to-face work.
Therefore it is rarely the case that virtual assistants need public liability insurance unless the work they do does have an element of face to face contact with clients and their property.
What does public liability insurance cover?
Public liability provides policyholders with legal defence and covers a possible payout if found liable for property damage or causing an injury.
Cover includes:
- accidental injury or death
- accidental property damage
For example:
- A client who visits your premises gets injured in a slip or fall and is demanding that you pay compensation.
- During your visit to a client's home, an accident occurs and you’re blamed for the consequences which could be property damage or an injury.
Shopping for virtual assistant insurance
Whether or not you decide to use Suited virtual assistant insurance to protect your business, it’s worth keeping the following in mind:
Cheap virtual assistant insurance
When thinking about buying insurance for virtual assistants, while a competitive price is always welcome, don't choose a product just because it's cheap. When the price is too low, you'll need to take extra care to read the small print, especially what is excluded and what would happen if you had a claim.
The insurer's reputation is important
Insurance needs to be there when you need it most. The payout reputation of an insurer is essential. Suited uses financially sound insurers with an A+ rating.
Many providers charge fees to amend or cancel
Low initial prices often hide additional charges to pay monthly, amend or cancel your policy. At Suited, we charge no extra fees, and you can cancel anytime with no more to pay.
Some policy wordings are restrictive or have a high excess
Some providers will offer attractive prices, but it is at the expense of cover given. Suited professional indemnity and public liability have £0 excess.
