Where to get CIMA professional indemnity insurance
Professional indemnity insurance is not only seen as useful by many consultants and external experts, but as essential in certain sectors. Management accountants who are practising members of the CIMA must have a policy in place and this means getting suitable cover from an established provider. The options are numerous and it can help to know a bit about some of the various aspects of CIMA professional indemnity insurance before you take the plunge and get a policy.
Of course there is no guarantee that a management accountant will experience a legal claim, although it does happen. A heightened sense of legal awareness in today’s society means that people may be more inclined to seek formal redress if they feel they have been wronged.
The risks of being sued were once more associated with American business but in reality anyone in the UK who feels they have been damaged professionally or financially or even personally by someone’s actions can launch a legal case.
Whether or not the claim is valid it will have to be defended. Even erroneous claims which are born out of malice have to be defended if they are formally lodged, and this is where professional indemnity insurance can be particularly useful.
Certain instances you simply cannot plan for, but may cost you a considerable amount of money if you don’t have cover in place. Complex legal arguments can go on for months or even years, so it can pay to have indemnity insurance in place to pick up the tab and to even cover the cost of any compensation which might be awarded against you.
In exchange for a regular premium, the insurance company will effectively pay the cost of your legal defence if you are formally accused of a mistake, error, omission or act of negligence. CIMA professional indemnity insurance also pays out in the event that somebody faces an accusation that they have acted dishonestly or that they have unintentionally breached intellectual property rights or confidentiality.
It’s also worth pointing out that many potential clients may not deal with a professional who does not have a form of indemnity insurance in place. For example some official bodies like a police authority or a council may not deal with a firm which does not have protection.
CIMA professional indemnity insurance can be bought from specialist cover providers which will supply a deal which matches what is required. Note that in some cases it can be sensible not to stick to the absolute minimum with this kind of cover – there is the risk of being under-insured if a firm takes out an inadequate payout limit which runs out in the middle of a legal case.
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