Why counselling professional indemnity cover can save a business thousands
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.
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