Who needs professional indemnity insurance?

March 1, 2010 · Filed Under Professional indemnity insurance 

If you run your own company then the benefits of professional indemnity insurance (PI insurance) should be seriously thought about. This cover can help protect your company against unexpected financial loss due to a claim made against it.

In some professions (such as accounting), professional indemnity cover is a compulsory requirement for all members in practice and can typically provide cover for their statutory and contractual obligations.

You may also find that some clients will only work with you if you have evidence of cover – this protects you and them in the event of a claim.

What it does

Minimising any financial loss is the key to professional indemnity insurance. It can help your business survive if something goes wrong. Keeping your business running with as little disruption as possible as well as minimising any financial loss may be achieved with professional indemnity insurance.

And usually, even the self employed can benefit from the financial protection offered by professional indemnity cover.

A claim can be made against your business where your customer suffers some form of loss because of actions – or lack of actions – on your part or that of an employee. Unintentional mistakes can and do happen even to the best of managed businesses, and yours is no different. The cover will typically help pay for the cost of defending you against any allegations made against your company, as well as damages. There will of course be limits as to how much you can claim.

Public liability insurance and sometimes employers’ liability insurance may also be part of your PI insurance package or can often be bolted on, potentially giving you all-round protection.

PI insurance quotes

Getting covered can be easy. It is important that you consider buying the cover from a specialist provider of professional indemnity insurance. Buying it from someone who has expertise within your particular sector can help you find the right product, rather than trying to go for a one-size-fits-all type of policy that a traditional or mainstream insurer may offer.

It makes sense to shop around and get a professional indemnity insurance quote – why pay more for it than you have to? This insurance offers a wide range of benefits, protecting you against the financial distress caused by third party claims made against your business, but there are competitively-priced options available in the market place, so take advantage of them!

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