Protecting a company in the long-term is at the forefront of most people’s minds when it comes to managing the business. They may spend a lot of time planning and ensuring its financial security is permanent and not temporary, while others put emphasis on the training of key members of staff. But companies also need to consider legal implications, depending on the line of work, and a counselling business may want to ensure it is protected against law-related risks. Counselling professional indemnity cover is a wide policy which can protect against some of the more common legal hiccups.
Professional indemnity simply refers to a kind of insurance which will payout in the event you face a legal claim, or to use a more common phrase, are sued. It typically applies if you’re accused of making a mistake, omission, or committing an act of negligence in the general conduct of your business. This can apply to an individual or a firm as a whole.
Court cases can drag on for a considerable length of time and cost a considerable amount of money, depending on the outcome. In some circumstances a claimant may even be awarded compensation because of something you or your company has done, and this can run into hundreds of thousands or millions of pounds.
Indemnity cover will payout not just for your legal expenses in the event you face a claim, but also for any compensation bill which may be awarded against you, up to certain agreed limits. Besides mistakes, this kind of insurance also guards against the risks of being sued for a number of other reasons, such as accusations that you have breached confidentiality or copyright. Unintentional libel, and even slander, are also typically covered.
To get a quote for policy, you will often need to complete an application, giving details about your business and its turnover. This can sometimes be connected to how much cover you need, as the larger your business, the higher amount of cover you may want. Companies which have a number of employees and a large number of clients may want protection running into hundreds of thousands, while smaller single-person firms may only want a small amount of cover.
Counselling professional indemnity cover is therefore an effective way of guarding against the huge financial costs which can be associated with legal claims. They can’t get rid of a claim for you, but they can help to actively pay the bills that would otherwise mean serious financial difficulty for your company.
Counselling professional indemnity cover will also often work just like any other kind of insurance in that you can agree an excess – which could help you to reduce the cost of your premium if you feel an initial quote is too high.
Dealing with problems sensibly are at the heart of any good counsellor’s set of skills. Professionals need to be sensitive, well trained, and discreet, but sometimes businesses operating in this sector fall foul of legal wrangling due to the nature of their business. These days people are more aware of their rights, meaning they could take legal action if they feel they have been harmed by the advice they have been given. This means counselling professional indemnity cover is something for anyone operating as a counsellor to consider. It can provide a useful safety net for those worried about unpleasant claims.
This is not a complicated product, although some people may believe it to be because it has traditionally been associated with lawyers and architects. But it applies to anyone who provides professional advice as their main way of making a living. In short, it provides financial support if someone is formally accused of making a mistake, error, omission or act of negligence in their day to day business.
An indemnity insurance policy will pay out for legal help to defend such cases. It is important because hiring a law professional to defend an action can be an expensive and time-consuming prospect. Smaller firms may find they are immediately put into financial difficulty if they suddenly have to pay out a lot of money towards someone to represent them in a civil law case.
Up to certain limits, indemnity cover will pay out all legal bills associated with defending the case. They will even cover the cost of compensation if it is awarded to a complainant. A policy of this type also normally protects against a wide range of situations. Besides errors, it will protect a counsellor against allegations that they have breached someone’s confidence or copyright. It will even pay out against defamation actions.
Counselling professional indemnity cover is therefore potentially invaluable in the right circumstances. It takes away the worry of what a business would do if faced with a considerable legal claim. It is also quite flexible in that you can decide the level of cover your business needs which will relate to how much business you do and how many clients you have. Insurers will normally pay out right the way through a court case, from an initial hearing all the way up to the High Court. Although this may not be necessary, it is useful to know you will have protection no matter how detailed or complicated your case gets, provided it stays within the policy limit.
You can even arrange counselling professional indemnity cover for a kind of ‘run off’ period after you have ceased trading or when you are simply changing insurer, to protect against any claims which arrive when you would otherwise be in a vulnerable period when you’re not covered. Public liability insurance may even be included with some products.
Getting an insurance policy in place to help you guard against legal risks may sound unusual, but it is taken out by many businesses offering professional advice. A counsellor may be vulnerable to legal challenges alleging they have made avoidable mistakes, so a counselling professional indemnity cover policy could help protect your business in the long run.
This might sound quite complicated and expensive, but the basics of the market are quite simple. Professional indemnity cover protects the policyholder if they face a legal claim that they have made a mistake. Typically it will cover accidental breach of confidentiality, unintentional breach of copyright, or acts of negligence and even things like unintentional defamation.
In the right set of circumstances any of this might lead to a solicitor getting involved, and then you have the chance of being sued on your hands. This means hiring a legal team of your own, which could cost a considerate amount of cash. Counselling professional indemnity cover would pick up the cost of hiring help, and can even pay compensation to a successful claimant.
There are certain limits attached to policies, meaning that they will not pay out for ever. This means there is a risk of being under insured if you do not get the right policy. For example, if you had a policy protects you for £200,000 worth of legal bills, but then face a court case which ends up costing you £110,000, you would have to make up the £10,000 difference. This is known as being under insured. Bigger companies tend to take out bigger policies, possibly protecting them for millions of pounds worth of legal bills.
You will need to make a cover decision based on the type of client you deal with and the size of your business. An insurance company may be able to guide you towards what might be the best policy for you. One of the benefits of counselling professional indemnity cover is that it does not matter whether or not the claim levelled against you is true or not. You policy will work on your behalf regardless. So say someone approached you for treatment with a psychiatric problem which then worsened after they began consulting you, they may make a legal claim, and in such circumstances your policy would pay for your legal defence.
Should you lose a case and the client be awarded compensation, a policy will even cover the costs of this. Again certain limits will apply, but this means you would not have to dip into your own pocket to comply with the court’s order.
Counselling professional indemnity cover can even be arranged to cover retrospective incidents, which are levelled against you and refer to something which happened before the policy was bought. This ensures you are even protected against things which happened before you were sought cover
As a counsellor any professional may quite rightly be more focused on the needs of their patients and clients than they are on the administration of their business. But having the right insurance cover in place is important, even for small companies and independent counsellors. Counselling professional indemnity cover is a type of policy which guards the policy holder in the event they face legal action after an accusation they have made a mistake. In the right circumstances this can help safeguard the counsellor’s business.
Counselling professional indemnity cover might sound like a complicated product, but in reality is quite straightforward. In short it will help someone if they are sued by someone who feels a counsellor has acted wrongly and made an error. It will also cover things like omissions, accidental breach of confidentiality, unintentional breach of copyright, and even defamation.
Any of these things can end up with a solicitor’s letter arriving through the letterbox announcing a court case. Hiring a legal team to defend such accusations can be expensive and time consuming. In the right circumstances it can cost an awful lot of money and brings some companies to their knees. Professional indemnity cover will help protect a business by paying for its legal bills while sorting out such a case, although certain limits apply.
Working out how much cover someone needs is the key choice in ordering a counselling professional indemnity cover policy. No policy will cover an unlimited amount of legal expense, so some firms supply a sliding scale of protection. So a smaller firm might select protection for legal bills up to, say, £100,000, while bigger companies select cover for hundreds of thousands or even millions of pounds.
Even if a policyholder is unsuccessful in defending the case, and the complainant is awarded compensation, counsellor professional indemnity cover will even pay for this, again up to the policy limit. This means subject to an excess, a business will hardly need to pay a penny towards the defence of a legal action after a successful claim.
Indemnity cover used to be a policy which was only associated with people like doctors and architects, but it is now popular with many people who provide professional advice for a living. It need not be overly expensive and could save a business from going under if they faced a challenging legal wrangle.
Counselling professional indemnity cover can even be arranged so that it will protect you against any retrospective claims, which arrive through the letterbox which relate to something which occurred before the policy was purchased. This is known as retroactive cover, and means even a business which has been slow to get the right kind of policy in place need not worry about something unexpected coming back to bite them.