How professional indemnity insurance safeguards your business
Published 01 December 2017
We read about it all the time. A deal goes sour and a business gets hit with accusations of negligence or even misconduct. Damages claims can run into millions but even if they don’t the cost to a company’s professional reputation in lost business can be incalculable.
Professional indemnity insurance protects a provider of business services from both scenarios. It’s absolutely essential, even if you’re a sole trader operation.
If there is any chance at all that you or your staff could omit some aspect of a service or that one of your customers could find a reason for being less than satisfied, you need professional indemnity cover. Everyone makes a mistake occasionally, and some people will find fault no matter what you do.
being able to pay legal costs of defending yourself against a damages claim
paying out an agreed settlement sum.
Depending on your industry, you may already be required to take out professional indemnity insurance to comply with statutory regulations. In some sectors, such as hairdressing, it’s up to your own discretion.
In either case you need to be confident that your insurance cover is both adequate and fit for purpose. That’s why it makes sense to get expert advice from an insurance broker.
Why use an insurance broker?
Compliance: If you operate in an industry that specifies a certain level of professional indemnity cover, you need to be sure that you meet the requirement.
Adequacy: The policy should completely cover all the business’s entities and personnel.
Paperwork: A broker can also guide you in preparing duty of disclosure information about your business.