The benefits of CIMA Professional Indemnity Insurance
Members of the Chartered Institute of Management Accountants can protect their livelihood and reputation against claims sought against them with CIMA professional indemnity insurance. This protection is designed to provide financial assistance in the event of claims relating to statutory and contractual obligations.
Anyone who runs a business or provides a service will need to protect themselves against the unexpected. The Financial Services Authority sums up what professional indemnity insurance is: “a liability insurance that covers businesses in the event that a third party claims to have suffered a loss as a result of professional negligence”.
This means that the insurance can not only help protect you financially by providing financial help with legal and compensation costs, but can help keep your reputation intact too.
There are many variants of professional indemnity insurance and, often, a wide range of levels of cover within the specific policies too, so it is important that you choose the type of cover as well as the right level of protection in order to ensure that you have the policy that best suits your requirements.
Where to buy your cover?
Getting your CIMA professional indemnity insurance can be quick and easy if you go to a specialist provider. A professional indemnity insurance broker will have the knowledge needed in order to match your needs with the right policy, which is particularly important as your trade is within a niche sector.
What to consider when making your purchase.
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. Confirm with your broker what this will be.
And look out for any exclusions within the cover that could mean that your policy was useless. Again, check with your broker if you are not sure.
Make sure that you have an adequate sum insured so that there are no shortfalls that you would be financially liable for in the case of legal action.
Finally, no matter how well run a business is, mistakes can happen that could result in legal action being made against you. By having CIMA professional indemnity insurance in place, you can have the peace of mind that your business would not suffer should the unthinkable happen.
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