Professional indemnity insurance is a type of insurance that offers protection for professionals against claims arising from their work. It may cover things like legal costs and damages, as well as any other expenses.
However, taking out this type of insurance is always worth considering if you are self-employed or running your own business. It could save you a lot of money in the long run. Professional indemnity cover is not always mandatory, but it may always be worth considering if you want to protect yourself and your business from potential claims.
The policy may cover claims made against you concerning matters such as:
- Accident and injury
- Breach of duty
- Negligence (including errors and omissions)
- Professional liability
Why Do You Need Professional Indemnity Insurance?
Professional indemnity insurance aims to safeguard whether the claim is accurate or not. It protects your property, reputation, and personal belongings. This means that even if a claim arises, you may carry on with your business. You may not need to worry about losing money or building a bad reputation.
Your level of professionalism or skill may not always influence the likelihood of accusations being made against you. There is always a chance that a dissatisfied customer may file a claim against you. So, If you provide professional advice or service, you may need professional indemnity insurance.
Who Needs Professional Indemnity Insurance?
Various professionals need professional indemnity insurance, including but not limited to
- Accountants
- Architects
- Engineers
- Financial advisers
- Real estate agents
In some cases, even individuals who provide advice or consulting services may require this insurance. If you are unsure whether you need professional indemnity insurance, it is always best to speak with an insurance agent or broker. They may be able to assess your individual needs and provide you with the coverage that is right for you.
Professional indemnity insurance is important, and many companies forget about it. This may lead to all sorts of problems down the line. If you don’t have the right type of insurance, you may find your company taken to court for something you achieved in your role.