Private investigator professional insurance can be essential

December 30, 2008 · Filed Under private investigator professional insurance 

The average private investigator will be used to taking chances, be it in the course of running a surveillance operation or while making decisions which affect the business. However good an investigator is, there is always the threat of legal action should a client or subject feel they have a cause for complaint. One mistake can lead to a lawyer’s letter and even a court appearance – never a cheap experience – but private investigator professional insurance could help to pick up the bill and take away the potentially damaging financial implications.

Private investigator professional insurance which includes indemnity cover will protect an investigator if they make a mistake or commit an act of negligence during their day-to-day business. It will pay legal bills up to agreed limits if they have to defend themselves in court and will even pay compensation to a complainant if it is awarded.

For example, if while investigating someone for a corporate client, a professional needs to obtain documents which contain personal information belonging to a subject, there is a chance they will be accused of breach of confidence in certain circumstances. Insurance which includes professional indemnity cover will also cover this circumstance, as well as any allegation of breach of copyright or defamation. Some policies will also include extras like public liability insurance. Also, if an investigator runs an agency which has a number of people on its books, any employees dishonest actions, such as theft from a subject or client, will also normally be covered. An investigator may, from time to time, be entrusted with a client’s important documents or even data on a disk. If this happens to be lost or damaged, resulting in a claim, this circumstance will also normally be covered by a policy.

Different levels of cover available mean a firm can select anything from around £50,000 of cover up to millions if they feel this is appropriate. Is important to make the right judgement about what is needed to avoid the risk of being under-insured and still being landed with a large legal bill even though you have insurance.

If an investigator decides on a change of career or winds down the business, ‘overrun’ or ‘run off’ cover can be arranged which protects against any claims which may arrive which relate to when they were still working. Backdated cover is also available for anyone who is changing insurer or who has been operating for some time but has only just arranged protection. This means the right private investigator professional insurance could help guard against most of the common legal risks associated with the industry – even if someone is worried about a claim arriving which relates to something which happened months ago.


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