09-01-2008
Why professionals need professional indemnity
by Rosie Beasley
No doctor would be able to practise medicine without knowing that he had insurance to back him up should he make the wrong decision and cause a patient to sue.
Similarly, as a professional your clients are placing their business in your hands. Would you take on such a responsibility without knowing that if you made a mistake you would be covered against litigation?
Professional Indemnity insurance can be expensive and getting the right cover can be difficult. For these reasons some professionals take a chance and go without. But no matter how much experience and knowledge you have of your industry, mistakes can still happen. Ignoring the possibility could be very costly and even put you out of business yourself.
Having the right insurance can also make your services more attractive to clients. The knowledge that they have some sort of come back if things go wrong could be the deciding factor in their decision to hire you.
Who needs it?
If you sell your knowledge or skills you should certainly look into it. Professional Indemnity cover is designed for professionals such as accountants, business consultants, project managers, trainers, IT consultants, architects, etc.
What will be covered?
If you make a mistake or are negligent in the services you provide to a client, the insurance will help you defend any claim against you in court. If you lose, the policy could cover your legal costs as well as any compensation awarded.
The policy could also cover the cost of correcting a mistake, helping to avoid a larger claim being made against you.
Many policies will also cover you if you lose or damage any of your clients’ documents while they are in your care, or if one of your employees is involved with the theft of a client’s money.
Getting the right cover
As each professional requires different cover, it is important to check your policy carefully to ensure it meets your requirements. With a broker such as Simply Business, you can compare online quotes and corresponding policies from leading insurers and then discuss them on the phone with the UK contact centre.