As a business owner, you want to protect your business in as many ways as you can. So what’s Professional Indemnity insurance and do you really need it? We’ve put together some of the main things you should consider.
What is Professional Indemnity insurance?
Professional Indemnity insurance will protect you against the costs of legal claims in the event of a third party suing or claiming for damages due to a breach of professional duty. Simply put, if you do not accomplish a responsibility covered by your work or contract, you could face legal action. Professional Indemnity insurance gives you the ability to defend your business and prevent financial loss.
What could cause a Professional Indemnity claim?
- Breach of contract
- Misleading information
- Breach of confidentiality or copyright
- Providing poor-quality, incomplete, or incorrect work
- Making mistakes or oversights
These are just a few actions that would result in Professional Indemnity claims. Regardless of the merit of a claim, your cover will help pay for legal and defence costs as well as potential compensation so you can focus on your business.
What does it cover?
Professional Indemnity cover typically covers:
- Legal defence related to an approved claim
- Investigating a claim including those by a professional body
- Responding to a disciplinary inquiry
- Court attendance
- Public relations
Professional Indemnity cover will vary from business to business, it can be tricky to gauge how much cover you will need. This is where an adviser can step in and help you determine what cover will best suit your specific needs.
What happens if you don’t have professional indemnity insurance?
The cost of not having Professional Indemnity cover can be quite significant. You never know when something may occur and you don’t have to be in the wrong for someone to make a claim against you. It’s not worth taking the chance trying to defend yourself and your business
Contact our friendly team today to get your insurance sorted.