No matter how conscientious you and your employees are and how many processes you put in place, sadly legal action may be made against your business where your customer suffers some form of loss because of perceived or genuine actions – or lack of actions – on your part. And that is where CIMA indemnity professional insurance can help to protect you.
Sadly, errors and omissions can and do happen even to the best of directed businesses, and yours is no different. However, with the protection of CIMA insurance behind you, you can rest easy knowing that the cover will pay for the cost of defending you against any allegations made against your company, as well as damages, should the need ever arise.
Claims sought against you or an employee could include negligence; the loss of sensitive documents; unintentional infringement of intellectual property rights etc.
There are many types of professional indemnity insurance available and, often, a wide range of levels of cover too, which can help protect you and your business against the financial fallout of a claim.
Certainly, many businesses would face financial ruin if a claim was successfully filed against them for damages or negligence, especially in today’s uncertain economic climate.
Deciding where to purchase your CIMA indemnity professional insurance does not need not be difficult nor time consuming. Rather than going for a traditional insurer, you may well want to use a specialist provider. Specialist indemnity insurance providers will have years’ of experience within your niche offering, meaning that they can supply you with the right cover.
Buying it from someone who has experience within the CIMA insurance industry can help provide you with the cover needed, rather than settling for a one-size-fits-all type of policy that a mainstream insurer may offer.
Points to note when choosing your insurance.
When it comes to purchasing your insurance, do note that as with most insurance policies, generally you will be liable to pay an excess on your policy.
And check whether the option to have retroactive cover is available – this is where you are protected against claims that arise out of work that was carried before the start of the policy.
The sum insured is of great importance. Firstly, being under insured means you will have greater financial responsibility should a claim be made against you. And, secondly, some of your clients may insist that you have a minimum sum insured in order to provide them a service, so do check on both counts.
To sum it up, before you buy your CIMA indemnity professional insurance, do confirm the protection that you will be getting before you buy, to make sure that the policy is right for you. Things to look at include the sum insured; any excesses; plus any exclusions that could render the policy useless.
Remember, no matter how well run a business is, mistakes can happen that could result in a claim being sought against you. CIMA indemnity professional insurance can protect you and help provide financial recompense so that your business does not suffer financial hardship.
CIMA indemnity professional insurance is compulsory and it is designed to protect CIMA members from losing everything financially. You may not think that anything can go wrong because you are fully qualified and you know what you are talking about, but unfortunately it doesn’t matter how qualified you are – things can, and do, still go wrong.
Preparing for the Worst
If you prepare for the worst then you will never lose everything. CIMA indemnity professional insurance helps you to prepare against claims that could be made against you.
There are a number of situations where a claim could be made against you. Whether you go onto third party premises, work from home or work on business premises; something can go wrong.
It could be that you have lost important documents relating to the third party employees. Or maybe you have talked about the third party to your partner and they have then mentioned it to their friends. Their friends could then tell more people and if the gossip is bad then you could be hit with a claim against you for defamation and a breach of confidentiality.
As an accountant it is vital that you keep everything to yourself because you are dealing with information regarding the company’s finances. It can sometimes be easy to let certain things slip to those close to you. However, no matter how tempting it might be, you really do have to keep everything to yourself if you want to avoid a claim being made against you.
Another way to protect yourself against a claim is to keep documents of everything. Write literally everything down and if possible get the third party to sign the document after the job is completed. This shows that at the time, the third party was happy with the work completed and that everything went smoothly. This will give you a little added protection if the case goes to court and you end up having to defend yourself.
CIMA indemnity professional insurance typically protects you against slander, negligence, damages/injuries, breach of confidentiality and loss of data/documents. It is compulsory to all accountants and it is not hard to see why. Without adequate insurance both you and the third party could end up out of business because of financial loss. So if you haven’t yet looked into indemnity insurance, now would be the perfect time to do so!
Sometimes things go wrong and your business may face financial ruin due to neglect or maybe the misconduct of an employee or due to a hundred other reasons. This is where a professional indemnity insurance plan can step in and help. CIMA indemnity professional insurance can protect you and your livelihood if a claim is made against your business by a third party.
It is available to members of the Chartered Institute of Management Accountants and can give financial remuneration in the event of a claim being made against you relating to statutory and contractual obligations.
If you were faced with a business claim against you or your company, CIMA indemnity professional insurance could step in and provide a number of benefits, such as assistance with legal costs and compensation claims. This would keep your business running where it otherwise may fall.
In a nutshell, minimising any financial loss is the key to professional indemnity insurance. It can help your business survive if something goes wrong.
So, where can you buy this invaluable CIMA indemnity professional plan?
You need to choose your insurance with care, and that is why people in a niche sector will seek out a reputable and specialist provider. A specialist provider can draw on their expertise within the indemnity insurance market place, so that they can provide you with the protection that meets your requirements.
Checking the cover is right for you is important. So, before you sign on the dotted line, check out such things as what the policy excess will be in the event of a claim – if there is any.
If you are in the middle of changing CIMA indemnity professional insurers, know whether your new provider will accept new claims for prior incidents.
And don’t be blasé about how much cover you need. Underinsurance can be a problem if you do not choose the amount of insurance that you need wisely, so do get your figures right.
A final point to check before you sign up is also whether there are any exclusions in the event of a claim.
To sum it up, CIMA indemnity professional insurance can protect your business against the unexpected, providing financial recompense in the event your company’s integrity and actions being challenged.