Do you provide advice or design or offer similar services in a professional capacity? If so, Professional Indemnity Insurance is an essential cover you need to consider for your business.
Any person who gives advice, designs, or offers similar services in a professional capacity is seen by clients as an expert. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received sub-standard service. The need for professional indemnity insurance has never been greater.
While some professional people see Professional Indemnity insurance as an expensive and unnecessary overhead, we know from experience that any professional can produce substantial claims. Court awards have risen sharply in recent years. Without insurance, the financial security of a business is threatened.
Professional Indemnity Insurance will provide cover if you become legally liable following an error or omission, non-performance, breach of duty or care or professional negligence in the professional advice or service you have provided your client and as a result have suffered a financial loss.
Many professionals — including Management Consultants, Project Managers, Web Designers, Marketing Consultants, Estate Agents, IT/Software Consultants, Interior Designers, Life Coaches, Accountants, Architects, Engineers & Surveyors and Individual Professionals (Gym Instructors, Nutritionist, Home Care Assistance, Lawyers, Accountants, Consultants) choose to have this type of insurance to benefit from financial protection in the event of a claim arising.
Whilst you will always work hard to ensure the best possible service or advice is given, unfortunately you can’t please everyone and everybody makes mistakes. The last thing you want for your business is for a disgruntled customer to not only prevent you from getting new clients, but also for a claim bringing an end to your ability to trade.
If your business sells knowledge, advice, design, specification or supervision, you will have a responsibility and a duty of care to your clients and third parties, through the services and expertise you provide. Having Professional Indemnity Insurance will provide your business with an additional level of security, helping you keep your business running in the event of a claim.
A Professional Indemnity policy is a ‘Claims Made’ policy which means that the policy in force at the time a claim is made is the policy which has to pay the claim, it is not the policy in force when the incident occurred. Therefore it is essential that you renew your Professional Indemnity policy each year because insurance cover will stop once the policy stops. Even if you cease trading, it is important to consider “run-off cover” for a number of years to avoid leaving you exposed to a possible claim and no cover.
Remember: Professional Indemnity Insurance is designed to protect you from both genuine and false claims from clients and third parties. If you are accused of negligence in any way, Professional Indemnity Insurance will step in, protecting you and your business whilst potentially paying any claims made against you.