As a business owner, you are likely to have many responsibilities. One of the most important of these is getting the right insurance for your company, which includes professional indemnity insurance. Let's take a quick look at what professional indemnity insurance is here.
So, what is professional indemnity insurance? In relatively simple terms, it is a policy which aims to protect businesses from the financial consequences of lawsuits related to professional negligence. Your company could be accused of professional negligence (i.e. fraud, bad advice, loss of documents) by a client and taken to court. If you lose the case, professional indemnity insurance will cover the amount in damages you have to pay.
Now, onto who exactly needs professional indemnity insurance. Any company that offers a service should get themselves a professional indemnity quote right away in case a customer or client decides they want to sue over the quality of service they have received.
Some types of business are more at risk from professional negligence lawsuits than others. The majority of these are companies that give out advice to their customers, such as mortgage intermediaries, lawyers, solicitors, accountants, insurance brokers, financial advisers and consultants. In fact, it is often a legal requirement for people in these professions to have professional indemnity insurance.
To fully understand why your business needs to get a professional indemnity insurance quote, think about what could potentially happen if you don't have insurance cover. For instance, your business advises a client to make an investment that later goes sour, and the customer takes you to court on accusations of professional negligence.
If the result of such a court case is that you are found guilty and ordered to pay compensation to the client, how will you afford it? Damages in these kinds of cases are often worth millions of pounds. Without the right professional indemnity insurance to cover these costs, your business could go under.
So, what is professional indemnity insurance? In relatively simple terms, it is a policy which aims to protect businesses from the financial consequences of lawsuits related to professional negligence. Your company could be accused of professional negligence (i.e. fraud, bad advice, loss of documents) by a client and taken to court. If you lose the case, professional indemnity insurance will cover the amount in damages you have to pay.
Now, onto who exactly needs professional indemnity insurance. Any company that offers a service should get themselves a professional indemnity quote right away in case a customer or client decides they want to sue over the quality of service they have received.
Some types of business are more at risk from professional negligence lawsuits than others. The majority of these are companies that give out advice to their customers, such as mortgage intermediaries, lawyers, solicitors, accountants, insurance brokers, financial advisers and consultants. In fact, it is often a legal requirement for people in these professions to have professional indemnity insurance.
To fully understand why your business needs to get a professional indemnity insurance quote, think about what could potentially happen if you don't have insurance cover. For instance, your business advises a client to make an investment that later goes sour, and the customer takes you to court on accusations of professional negligence.
If the result of such a court case is that you are found guilty and ordered to pay compensation to the client, how will you afford it? Damages in these kinds of cases are often worth millions of pounds. Without the right professional indemnity insurance to cover these costs, your business could go under.
About the Author:
Jerome Robson is a widely respected writer who has been writing for 5 over years often writes on Landlords House Insurance and a wide range of other subjects.
I learn from this blog that how a business can get benefits from insurance policy. This is very great information for me. Thanks for posting and i'll wait for next one.
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