If you sell your professional skills and expertise to clients, it could be wise to put professional indemnity insurance in place. Here’s a brief overview of this type of cover and what it can offer.
Why is it necessary?
You may have absolute faith in the skills and knowledge of your business, but unfortunately - mistakes can happen.
If a third party suffers damage or loss because of your professional advice or knowledge, you could be faced with a negligence claim. A claim of this nature could be financially crippling for a business if there’s no insurance policy to fall back on.
Even if a spurious claim is made against you or your business, the legal costs involved in defending your reputation could be difficult to meet.
What can it cover?
If you’re accused of professional negligence, this type of cover could help you to meet legal expenses and any claims that are awarded to the third party.
Claims can take a number of different forms – from a missed critical deadline to a piece of flawed consultancy advice. Typically, most professional indemnity policies will help protect you for the following types of claim:
• Libel and slander
• Professional neglect
• Malicious falsehood
• Abuse of copyright
• Breach of confidentiality
Who needs it?
Anyone who provides a professional service to clients should consider professional indemnity insurance.
If you regularly give advice to clients, handle confidential data or are responsible for a client’s intellectual property – professional indemnity insurance should probably be a top priority.
For example, for legal firms and financial advisors, professional indemnity insurance will typically be a necessary regulation. Anyone acting as a consultant may also benefit from this type of cover.
Where to buy it...
If you’re searching for professional indemnity insurance or any type of business cover – you’ll want to make sure you’re getting the right policy at the right price.
By looking online and comparing different providers, you can help ensure you’re getting the best deal for you. Here at Policy Expert, we can help you search for a professional indemnity policy to suit your specific needs. You could also visit Prime Professions who also specialise in professional indemnity insurance.