Professional Indemnity Insurance Facts

Professional indemnity insurance is a type of insurance cover for business and business owners. It protects them from unwanted and legal such as costs from legal charges, negligence, loss of documents and breaches in copyright law, claims against service dissatisfaction. This kind of insurance cover is mostly created for those who engage in consultancy services, those who keep documents for third parties, and offer advisory services to their clients. If your clients do not receive the required services they anticipate resulting in consumer dissatisfaction, this might give rise to claims resulting in financial or monetary costs that could result in serious damage being done to your company.   Professional indemnity insurance from is created for those who use their skills or knowledge to render services to their clients.

During the course of doing business or rendering your services, professionals such as health practitioners, lawyers or legal officers, accountants, consultants, engineers can be charged if mistakes happen even if it’s not their fault.  Claims could be instituted against the business or the business owner which can affect the image of the business and owner, but professional indemnity insurance protects the business and owner from the costs and also provides legal support.

Professional indemnity insurance has different policies which protect different aspects of the business such as the business itself, its owner, and its employees against all legal and civil aspects. The standard professional indemnity insurance protects the business and owner from civil liabilities that might be incurred during the course of rendering your services. There are some policies which protect the business from legal liabilities such as charges and claims while other cover will protect the business and owner from charges and fines from professional penalties incurred as a result of client dissatisfaction.

When a business buys or engages the services of an insurance company, the company provides the insured with the amount that will be covered when there is a claim, but when the amount charged is above the amount insured, your insurance cover will not cover the claim. If an insurance policy cover expires and the business does not renew the cover, any damages incurred from that time will not be covered by the insurance company. The insurance company might not be liable or cover damages incurred by the insured overseas. The insurance company may also not cover damages or claim incurred after a professional has retired.

Regarding fees charged by insurance companies; businesses differ so to do the rates they charge.  A business might only be interested in covering legal charges against them. Business can research and go through a professional or business insurance policy to discover the cover that best suits the services they render. It is also important and crucial to consider the size of your business when considering the amount for a professional indemnity insurance budget. Large companies would consider a large budget while a small company would consider a lesser amount for legal fees.