As a practicing professional, you must have heard of professional indemnity insurance policies. Unfortunately, most of professionals are still unclear about offerings of professional indemnity that can provide a solid financial back-up. In this article, we’ll provide a beginner’s guide on professional indemnity insurance:
What is Professional Indemnity Insurance?
It is a form of insurance that protects a practicing professional from third-party claims by dissatisfied clients during the course of service provided to them. Even, the most respected and well-established cannot eliminate the risk of error, omissions and negligence. Besides these factors, professional indemnity can be taken for averting situations like breaching intellectual rights, loss of confidential data/documents, dishonesty and such others.
How it protects a professional?
Having a good insurance policy protects a professional in so many ways.
- In situations when a professional commits a mistake or involves in a dispute with a client and turned into an unpleasant legal battle between both the parties. Insurance policy can defend your claim by paying all your legal fees and compensation claims.
- With a good insurance policy, you can sort out your problems at initial level only. You do not have to suffer problems when they turned big and worst.
- In case, you have lost some important documents or data while working for the client, you are liable to pay for the damages. Situations when your employees get involved in any theft activity, you will be held responsible for paying off the compensation.
With professional indemnity insurance, you can access to specialist claims staff and expert advisors who know about your working model. You can also get the help of a specialized defending team who will fight for your interests in a court. Professional insurance also minimize your business legal costs. Insurance policy providers work hard to protect your honor and credibility as an expert professional.