Why do mediators need insurance?
Mediators often work in sensitive and high-pressure environments. Insurance can help manage the financial impact of professional mistakes, accidents involving clients, or damage to workplace equipment.
A settlement error
Mediators are expected to guide clients through complex and often high-stakes situations, but facilitating settlements can be challenging. Despite your best efforts, outcomes may not always satisfy all parties involved. For example, if a client feels negligence or an error in the process has resulted in financial loss, they might bring a claim against you.
Defending a claim can be costly and time-consuming. Professional indemnity insurance can help with the legal fees involved in defending such claims and paying any compensation, reducing the financial impact on your business.
A client accident
Meeting clients face-to-face can be an important part of mediation work, and workplace accidents can happen. If someone is injured while visiting your office, they might seek compensation.
Public liability insurance can help cover legal fees and compensation costs if someone outside your business is injured or their property is damaged in connection with your work. This cover can help manage the financial impact of unexpected incidents.
Office break-in
Office equipment, such as phones and computers, is an important part of running a business. These items can be at risk of theft or damage, which may lead to significant replacement costs and business interruption.
Business contents insurance can help cover the cost of repairing or replacing stolen or damaged items on your premises.
What insurance is available for mediators?
Professional indemnity insurance
Professional indemnity insurance can help protect your mediation practice if a client claims you made a mistake. For example, if an error such as omitting key information led to a financial loss for one of the parties, professional indemnity cover could help with legal defence and compensation costs.
This type of insurance can also cover claims connected to previous work or work carried out by subcontractors on your behalf.
Public liability insurance
Public liability insurance can help protect you if someone outside your business is injured or their property is damaged because of your work. This could include a client who trips while visiting your premises.
Public liability cover can help with the cost of compensation and legal fees if a claim is brought against you. Whether you meet clients at home, in a shared office, or off-site, this cover can provide reassurance that you’re protected against accidents you may not be able to prevent.
Whether you're a sole practitioner or run a larger mediation practice, cover is available up to £10 million.
Business contents insurance
Business contents insurance can help if the equipment you rely on is lost, damaged, or stolen. This could include furniture, computers, phones, or specialist tools you keep at your premises.
Having business contents insurance in place means you can replace or repair what’s needed and minimise disruption to your work.
Insurance needs can vary between mediation practices. Some may require employers’ liability cover.
If you’re not sure what you need, tell us a little more about your mediator business. We’ll build your quote, and we’ll help you explore any other insurance needs.
Build my coverInsurance for mediators: FAQs
Are subcontractors covered?
Hiscox professional indemnity insurance can include subcontractor cover, depending on your policy. This means you can be covered if you outsource work to another mediator outside your practice, and a claim arises from the work they carried out for you.
Independent contractors may need to be declared when setting up your policy, and in some cases, they may be asked to hold their own insurance.
What if a dispute arises after a mediated agreement – will my insurance cover it?
Professional indemnity insurance is typically written on a ‘claims-made’ basis, which means it can respond to claims made during the policy period, even for work completed in the past. Therefore, if a dispute is raised months or even years after a mediation and it relates to negligence or error in your work, professional indemnity insurance can help cover legal costs and compensation, subject to the terms of your policy.
Cover for previously completed work can also depend on your policy’s retroactive date – the date from which you’ve had continuous cover, or a past date your insurer has agreed to cover you from. With Hiscox, this can be set for a date in the past, so you may be covered for work you did before taking out your current policy.
Would business insurance cover claims for multiple dispute resolutions?
Policies generally set limits either on an ‘any one claim’ basis or an ‘aggregate’ basis:
- With an ‘any one claim’ policy, each separate claim has its own cover limit. However, if several claims are considered related, they may count as a single claim for the policy limit.
- With an ‘aggregate’ policy, there is one total cover limit for all claims combined during the policy period, regardless of the number of claims.
Your policy schedule outlines which limit applies to your policy.
Does the policy include cover for mediation conducted remotely or online?
Professional indemnity insurance can cover professional services delivered in person or virtually.
Related articles and guides
Starting a business – ultimate guide
If you’re only just beginning, you can find everything you need to know in our ultimate guide to starting a business. From registering your business to taking on employees.
Prepare your business plan on a single page
Planning your venture alone can seem like a daunting task. Bernard Marr offers his SMART strategy board for preparing your business plan in this guide.
How much does business insurance cost?
At Hiscox, we offer the opportunity to tailor cover to your business, giving you more control over what you pay. Discover how much business insurance costs with this article.