Professional Indemnity Insurance
Professional Indemnity Insurance provides protection against individuals who claim that they were disadvantaged by following your professional suggestions. Typical claims, which are covered by this insurance, include physical injury, damage to property or financial losses that have come as a direct result of following your professional advice.
Why is Professional Indemnity Insurance Necessary?
On occasion it’s possible in your profession to unintentionally breach privacy or confidentiality, omit information, make an error of judgement or provide the wrong advice. A simple act, error or omission can lead to a claim against your business, therefore making it vital to protect yourself, your business, and reputation.
Professional Indemnity Insurance is important as the legal costs associated with defending any claims can be significant. Court and other legal fees to defend your business are often underestimated, and small businesses in particular can struggle to find the money to pay for this, regardless if they are found liable or not for damages. Court cases can also drag on for extended periods of time, with ongoing fees over years which can have a significant financial impact on your business.
Professional Indemnity Insurance is important as it can protect you from bearing the full cost of these claims. This can allow you to keep your business up and running as normal, without too many disruptions to your normal operations.
Who needs Professional Indemnity Insurance?
Professionals such as lawyers, accountants, bookkeepers, architects, engineers and marketing specialists are a few of the professions where Indemnity Insurance can apply. Professions that have more hands-on jobs are less likely to need Professional Indemnity Insurance, however it can still apply in some cases. For example, agricultural consultants, event managers, life coaches and marriage celebrants.
Whatever industry you work in, as a Professional in that industry, you hold the responsibility that your advice or services is of quality. Therefore if you provide advice or services to your client which are incorrect, you could potentially be liable to pay for losses occurring as a result of this. Regardless of your profession or the size of your business, Professional Indemnity Insurance provides businesses with the peace of mind to keep working confidently.