What is professional indemnity insurance?
In the instance where your business may breach confidentiality, be accused of defamation, breach copyright or loose client documents or data professional indemnity insurance will cover your legal and compensation costs, should a claim be brought against you.
Professional indemnity insurance can cover a broad range of potential risks. It can help safeguard your business for things which seem like small risks at first but can quickly escalate and become catastrophic for your business.
It may seem complicated but it is important if you want to protect your business. Here are a few tips to help guide you in your search and understanding of how to find the right professional indemnity insurance.
Understand the nature of your business and find protection that’s right for you.
What does your business do? It is important to have a clear understanding of your daily business. Once you have a clear understanding of what your business does and what kind of clients you will be working with, you can then look to find the right insurance.
If you have a niche business look for specialist policies that fit your business needs. For members of selected professional bodies, see if they have specific professional indemnity insurance they recommend that are compliant with their requirements.
Do you provide a service or give advice?
If you provide a service or give advice to your clients, you will need professional indemnity insurance. It is not mandatory by law however it protects you and your business in the event a client accuses you of negligence or inadequate service resulting in a financial loss for your client.
Professional indemnity insurance can also help win contracts and many clients will ask if you have it in place. Having it in place gives clients the peace of mind, should an issue arise, it will be dealt with easily and efficiently.
Look at professional or regulatory bodies.
Industry bodies will often require you to have professional indemnity insurance. If you are part of an industry body or looking to be, it may be worth speaking to them directly to find out exactly what they require when it comes to this type of insurance, they may also be able to provide advice and guidance on the best route to take.
Get advice and do your research.
Consider speaking to a regulated advice service about your insurance needs. They can search the market to find you the right deal, help you complete application forms or just provide advice.
Another place to look is online. There are a lot of insurers out there so always look at reputable companies. Using the internet wisely enables you to make an informed decisions, research your needs and find the right cover to suit your business requirements and circumstances.
The level of cover you choose is up to you. To find the right cover It is important to understand your business needs and the risks the business will face. Make sure any cover you take is suitable for your needs so you get cover you can rely on.