Mistakes can and do happen and in this society of blame; there is always someone to point the finger at. This can be devastating if you are the professional on the wrong end of that finger, and here is where professional indemnity insurance can help.
There are several types of professional indemnity policies that are tailored to different industries but they do provide similar coverage and benefits including defense aid, payout aid and the coverage can be extended to employees and any contractors working on behalf of the business.
When taking out a policy, it’s good to keep the benefits in mind, for if any claims are made against you, the insurance company will take over responsibility for payment (up to the coverage limit of your plan). They will also undertake their own investigation to ensure you as the client are treated fairly. And your legal fees will be covered too. If you want to find out more about PI visit the above link.
Any professional who provides advice and skills to third parties are well advised to take out this kind of cover as it not only protects their business, but any personal assets too. Such professionals include doctors and lawyers, financial advisors and accountants and even alternative therapists such as hypnotherapists. While most of these professional purchases are voluntary, those in the medical profession are required by law to have this type of policy.
Professional indemnity insurance policies cover mistakes made and any errors and omissions committed while they are providing their services. Many business owners have commercial liability plans, but unlike professional indemnity insurance, these do not cover personal negligence and can leave professionals unprotected should this type of claim arise.
When calculating premium prices, insurers will take business location, claim history (of the industry) and coverage amount required. Shop around and ensure you are getting the best deal for you. For more information visit the Wikipedia Indemnity Page.