I work as a communications consultant. Am self-employed (have my own limited company).
I only recently set up, and there are still a few things I'm sorting out, one of which is whether I need Professional Indemnity Insurance.
I suppose the worst case scenario is that I could recommend a client does some particular form of communication, and if something went wrong/ bad reaction then they might try to sue me? Question is, since I am a 'company' rather than a 'sole trader', would they be limited to sueing my company for its assets, or would this extend to me personally, as a Director e.g. risk my home etc.
The reason I am thinking about this is that I've just started discussions with a new client and they've asked me to sign a NDA (standard practice) but it seems to have very specific details under 'Remedies' if there were to be a breach of confidentiality.
Here's the text:
5.1 The receiving party acknowledges that damages may not afford the disclosing party an adequate remedy in the event of the receiving party's breach of the terms of this Agreement and that the disclosing party may obtain injunctions, orders for specific performance or other appropriate relief in the event of any actual or anticipated breach of these terms. The receiving party agrees with the disclosing party to indemnify the disclosing party and its staff and others engaged by it against all direct liability, loss, damage, and expense arising out of or in connection with any breech by the receiving party of any obligation in this agreement.
I've never agreed to indemnify a client before, and feel it's asking too much? My own standard T&Cs state that my liability is limited to the value of my contract with them.
Just wondering if I should query/ challenge it, or whether it's fairly standard practice and I need to get insurance ASAP? (if so, any recommendations?)