If you own a business you may be confused as to exactly which type of insurance policies you need to ensure your business is safe from all sorts of legal claims and damages. Business Insurance is a broad term with a few fundamental facets; just as Home Insurance has the two cornerstones of Contents and Buildings Insurance, Business Insurance incorporates such things as Public Liability, Employer Liability and the one we will focus on here: professional indemnity insurance.
If you type a term such as Business Insurance into your search engine you’ll find that the term ‘Business Insurance’ is subdivided into many different categories. Professional Indemnity Insurance is vital to anyone who provides any kind of consultancy or professional advice service. A good example may be Accountancy or Financial Services; industries where you sell knowledge and advice for the benefit of your clients.
The trouble is the information or product you are selling may at times be to the detriment of the consumer and in a world riven with legal claims and law suits you need to protect yourself against a financially ruinous charge of professional negligence.
You have a duty of care to all of your customers and if you breach this, which you can unintentionally do in a number of subtle ways, you can be left at the mercy of a compensation claim. Professional Indemnity Insurance will allow you to defend and settle a negligence claim where otherwise you may not have been able.
If you look at the levels of cover available from the Endsleigh Business Insurance ‘Professional Indemnity’ section, you’ll see that you can receive a level of cover from £50,000 to £2million – these vast figures should illustrate how important it is that you have a policy in place.
A Professional Indemnity policy can be obtained for a very reasonable cost and with insurance services you can also incorporate cover like Employers Liability and Public Liability.
13 replies on “Who Needs Professional Indemnity Insurance and why?”
i’m working in a business industry company but i don’t know if the company i’m working is ensured. i think this is now mandatory in pinas
I used to hate the idea of insurance but as the years pass by, especially having a family, it changes your perspective. With the right insurance company, you are at peace if something bad happens.
Well I am not aware that businesses should have insurance also to protect them for any damage or loss. I am an online seller and I am not sure if I can also get this kind of insurance.
I have a small business online and one day might be become big who knows…But not yet heard about the indemnity insurance thanks to your post I heard now..
Just like a person, business needs insurance as well especially with cases that they cannot handle and they rely on professional 🙂
Insurance is a must for nay business, the right insurance actually.
oh, really? I’ve never heard of this indemnity term before…good to know!
A business has to have an insurance of some sort. It is also for the benefit of employees and the company itself.
business owner should have this insurance
i so agree with you, that is why, business insurance is a compulsory for those who have one just in case of legal stuff will occur. Thanks for sharing this as to remind any business people to get one if they never had one yet.
This is a very good post.I know a lot about insurance from this post.I found it very informative and useful. Thanks for this post.
Over here in the US, there are so many laws, hence, businesses owners have to have certain insurance to prevent lawsuits just in case something wrong happen.
It’s a no brainer that every company should have this type of insurance that way when they encounter problem with their clients complaining about their products, their insurance will help them cover the expense.