Protection against worst-case scenarios is sensible for any business operation but, for certain professionals it is essential. Some firms need cover in place in order to gain entry into professional organisations, and for management accountants this is true in the case of the CIMA or Chartered Institute of Management Accountants. A CIMA insurance quote for a policy which fits the bill is easy to get from a number of insurance firms who can provide cover quickly and easily.
Members of the organisation are required to have professional indemnity insurance. This is essentially a form of cover which pays out someone’s legal fees and even any compensation which they have to pay in the event they face legal action, IE they are sued.
This kind of cover is seen as important not just by accountants but by a whole range of professionals who provide their advice on an expert basis. Outside consultants including accounts are expected to provide a high standard of service and occasionally to deliver advice which aids a business or even turns round its fortunes. Should their performance or advice fall below what a client expects, the client can take legal action.
Legal disputes may be more likely if the client in question has actually lost money as a result of following what a consultant has said or because of what a consultant has done. They may launch a legal action alleging the mistake and demanding compensation. Depending on how complicated the legal is, it may drag on for many months or even years and progress through the legal system.
Indemnity insurance would pay for the policyholder’s legal defence and for any compensation which might be awarded against them if they lose the case. Indemnity cover is seen as important by many accounts and other professionals because it will pay out whether or not the claim against the policyholder is valid. Sometimes claims may be completely malicious and unfounded, but they will still have to be defended and this again means running up a legal bill which will have to be paid.
A CIMA insurance quote can be given for a policy which is tailored to a professional’s needs and which meets the associations minimum requirements. Often a basic policy like this will cover the holder in the event they are accused of making a mistake, error, omission, or even an act of negligence in their day to day business.
Getting a CIMA insurance quote involves simply contacting a provider who may ask about what level of protection for legal fees your business needs and may also enquire about how contracts are agreed with clients and what type of work a business does specifically before supplying a price.
Are you looking for a CIMA insurance quote? If so then there are a few things that you should know before you apply.
Firstly you need to understand that there are different levels of cover available to you. The most common form of insurance you will find is fairly basic. It will include everything that you need, but it will be the bare minimum cover that you can get. Whilst this is fine, wouldn’t it be worth looking into the other levels of cover to see whether you are getting the best deal to suit your needs?
Getting the Right CIMA Insurance Quote
When looking for a quote a number of factors need to be considered. You need to think about:
- How much cover you actually need
- What extras you may want
When it comes to extras, there are a few options available to you. Some insurers could provide you with free services when you take out their insurance policies. This could include free protection for any work that you have completed in the past. Or you could choose to include additional legal expenses or a lower excess fee. There are many additional extras that you can add to your policy, you just have to know what is available before you choose the best CIMA insurance quote to suit your needs.
You have to remember that the more cover you choose to take out, the higher the quote will be. It is generally a good idea to take out as much cover as you can afford. This is because if a claim is made against you, you could end up paying a large excess fee if you are not covered for the full claim amount.
You will usually have to pay an excess fee no matter which insurer you choose to apply to. However the levels of excess will vary considerably and so you need to browse around to see the different levels open to you.
Overall when you are looking for a CIMA insurance quote it is always a good idea to know exactly what you need. That way it will make the process simpler and quicker too.
If you are a member of the Chartered Institute of Management Accountants, then you may have already considered getting a CIMA insurance quote. This insurance can provide financial protection against both statutory and contractual obligations.
It makes sense to shop around and get a CIMA insurance quote as why pay more for it than you have to? This insurance, after all, can offer a wide range of benefits, protecting you against the financial distress caused by third party claims made against your business, but there are low cost options available in the market place, so take advantage of them!
You may believe that this type of professional indemnity insurance (PII) is an expensive, unnecessary overhead. However, any business can face substantial claims against them, even those which have the savviest of business owners. And with awards from Courts increasing in recent years’, it is worth seriously considering CIMA insurance.
Where to buy?
When getting a CIMA insurance quote, it is important that you shop around among the reputable providers and do not just settle for the first policy that is offered – by your Bank Manager, say.
Using the services of a specialist provider who will have access to a comprehensive range of PII cover can help you to obtain the right type of product. They will often be able to offer tailor made, bespoke insurance so that you get exactly the right level of protection you need.
Certainly, there are diverse types of professional indemnity insurance and, often, different levels of cover too, which can help protect you and your business against the financial fallout of a claim.
What to consider?
When picking your insurance, do note that as with most insurance cover, generally you will be liable to pay an excess on your policy.
And remember that claim times after the incident could take some while so always make sure that you adequately protected. For example, if you are closing your company, ensure that you arrange “run-off” cover for a period of time after the business closes, in case a claim is made against it.
Do ensure that you have the right sum insured. If you do not take out enough cover, you will not have the full benefit of the insurance.
And don’t forget to check out what exclusions there are.
Finally, to protect yourself and your livelihood does not have to be a time consuming exercise. A specialist provider can give you a CIMA insurance quote quickly and easily, enabling you to find the right solution for your business.