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Professional Indemnity Insurance

You have probably heard about Professional Indemnity Insurance many times before but you were not really sure how it works for you and your business.

What is the Professional Indemnity Insurance policy?

No matter how much famous or respectable the reputation of a business is there would always be a time where a dispute could arise between the company and the client over some mistakes. These disputes can be caused by several factors and can damage the reputation of your business as well as cripple you financially.

Professional Indemnity Insurance is a policy that will ensure that your business gets the coverage to handle the financial obligation and reputation-spoiler clients.

Danger Areas to Look Out For

Clients would argue with you and may even sue you for a mistake that your company may have done due to the following factors:

  • Dishonesty: accountability occurring from the pilfering of your client's money

  • Negligence: liability occurring because of lack of due care

  • Loss of documents or data: liability arising from the loss of documents or data owned by your clients

  • Unintentional infringement on the intellectual property of other people such as trademarks, copyrights, broadcasting rights and the likes

  • Slander and libel

How will this Indemnity Insurance protects your business?

Should you commit an error in the professional services you render to your clients and a dispute arises which leads to the court, this type of insurance can help defend your right to the court. Even if you lose the case, the policy will cover the financial liabilities you will be made liable for, up to the insurance coverage you have taken.

This insurance policy will also include the cost of repairing or fixing any error on your part to avoid more huge claims later on. Solving the problem before it can blow disproportionately is a very basic step to make when confronted with this kind of problem. Taking this step often prevents waste of time, effort and money on both parties.

Under this insurance policy, you will also be covered should your client lose his money by theft by one of your employees or damage or lose any of your clients' documents or data in your care.

Professional Indemnity Insurance also gives you the following benefits other than what has been itemised above.

  • You will be given access to a team of specialist advisors and legal teams who are experts in the ins and outs of this kind of industry and who can defend you in court

  • You can avoid paying for large amount of legal bills which your business would have otherwise be obligated to pay for

  • Protection of your reputation in the industry

How much should you pay for Professional Indemnity Insurance?

You will never know what your business will have to face up to. Since no two business organisations are alike, what could be enough for another might not even warrant for the other one. Thus, to fully maximise the benefits of this type of insurance, it would be best to take as much policy as you can practically afford.

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