Using a CIMA indemnity professional like a broker to get the right deal

July 27, 2009 · Filed Under CIMA indemnity professional · Comment 

Getting hold of the right kind of insurance can be daunting, particularly if it is essential for your profession. Private doctors, architects, and accountants often have to have certain kinds insurance in place in order to practice, and management accountants need indemnity cover in order to qualify for CIMA membership. Of course fulfilling the rules is not the only priority, as indemnity cover can help to safeguard a business in the long run. Getting a deal can be made all the more straightforward by using a CIMA indemnity professional, like a broker who knows how this kind of Insurance works and how to ensure somebody is set up with a deal which not only fulfils the requirements but is cost effective.

Indemnity Insurance is of course straightforward and pays out in the event that somebody faces a legal challenge. It will pay the cost of hiring a solicitor to defend a case and will even pay the cost of any compensation if it is awarded against the policyholder.

Ordinarily it will protect against being sued and specifically against claims that the policyholder has made a mistake, error, or even an act of negligence in the conduct of their business. Insurance like this can be bought to protect one person or a firm with several partners.

A CIMA indemnity professional like a broker can quickly gather basic information from the policyholder and then obtain a number of quotes from different insurers providers. This can save someone time and money as brokers may have access to deals that somebody ringing around a number of firms themselves may not. They also have specialist knowledge and may be able to advise somebody on some of the elements and extras that come with professional indemnity cover.

For example, some deals come with public liability insurance, while others do not. Other deals include retroactive cover, which will provide protection for legal claims which arrive in future but which date back to something before the insurance was even bought. Sometimes it is also possible to arrange what is known as runoff cover, which ensures that somebody is protected for a set time frame after they have stopped trading.

A CIMA indemnity professional can therefore be a shortcut to a policy which meets the rules of the association but which also does not have to be something which makes a big dent in a firm’s profits. It’s often possible to get a deal which has a top limit which is relevant to a firm, as maximum policy payout amounts do not have to be in the millions of pounds.