What is Professional Indemnity Insurance?
This is a very industry-specific type of insurance that is needed across several specialties such as:
- Any business where a company provides advice or services.
The purpose of Professional Indemnity Insurance is to protect against claims of malpractice or professional misconduct (advice/service that is sincere but has gone wrong), costing the clients that were given the advice money.
How does Professional Indemnity Insurance work?
It protects the business against legal costs and claims by clients or third parties from damages arising from omissions or breaches of professional duties in the course of a business engagement with the client.
It’s critical to highlight that the insurance covers advice or consultancy given to the clients sincerely and to the best of their knowledge at that time but yet still caused damage to the client.
As a business, due diligence is critical but coupling this with Professional Indemnity Insurance protects your business in the unfortunate event that something goes wrong with the sincere advice/service that the company provided.
Why would you need Professional Indemnity Insurance?
Professional Indemnity Insurance is important because you save a lot of time and money while defending against a claim as you could be held responsible for your action/advice as well as for those of your partners and employees.
The Policy safeguards your business through cover against claims as well as legal costs, which allows your business to confidently continue its operations. If there is a sincere claim against you, insurance companies along with your insurance broker will provide the proper procedures for you to represent yourself in the correct manner. This allows you and your business to prepare all the required legal documents if you were to go to court.
When your business relies on the advice you give, Professional Indemnity Insurance is extremely critical to move forward with your business. From a risk management perspective, it helps you tighten your business and the manner in which the business provides advice.
Of course, this is a very specific and complicated type of insurance and you’ll need the help of a knowledgeable broker throughout the whole process; Starting with providing options and advice, selecting the most suitable policy, the inception of the policy, and keeping you updated whenever there are amendments or endorsements or claims.
At Petra Insurance Brokers, we will be there with our clients through every step of the process no matter how complicated it gets. Our job is to bring clarity to you.