How loss adjuster professional indemnity cover works to protect against legal challenges
The thought of a court case after a legal claim is not something any business likes to spend a long time dwelling on, but it is a risk for any business which provides professional advice, and can leave a company confused and financially unstable if they do not have a contingency plan in place. Legal battles can be time consuming and expensive, and if you have no method of paying for legal expertise to defend yourself, you can either find a court simply rules against you or can even end up defending yourself. Loss adjuster professional indemnity cover is a simple and straightforward way of ensuring you would get financial assistance if you ever faced a claim.
It normally will cover you if you face a legal challenge that you have committed a mistake, omission, or act of negligence in the normal course of your business. Any of these things could lead to a client seeking to recover any money they have lost through a court. Due to the nature of their job, having to make recommendations, sometimes based on limited information, a loss adjuster is arguably particularly at risk. Should a client feel they have lost money because of a wrong conclusion, in future they could sue.
Loss adjuster professional indemnity cover would kick in and pay for the cost of a solicitor or lawyer, meaning you would not have to worry about running up considerable legal bills just to fight off the claim. This kind of insurance is also indiscriminate, in that it kicks in regardless of how valid the claimant’s case is. Even invalid accusations have to be defended in court, which means hiring legal help.
This kind of cover will come with an attached ceiling which is agreed at the start of a policy. Beyond this an insurance company will not pay out any more for fees or compensation if awarded to a claimant. But it is possible to make a reasonable judgement and consider how much protection you will need, depending on the nature of the business and the type of client you deal with.
The normal loss adjuster professional indemnity cover policy will also cover for the likes of accusations of breach of confidence or copyright, any allegations of unintentional defamation, and even the dishonesty of a company’s employees. Public liability insurance can also be included with some policies.
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