Reasons to take out professional indemnity insurance..
If you sell your knowledge and skills as part of your business, there is certainly no shortage of threats to your professional wellbeing, and one of the key examples is that of having a claim made against you by a client for loss or damage. This can occur if you are found to have been negligent in some of all of the services that you provided or if you made a mistake. It is for this reason that it is mandatory for so many professions, including accountants, architects and solicitors, to have professional indemnity insurance, whether as part of their professional authorisation or as a regulatory requirement.
There are a number of circumstances that can so easily arise that, if they lead to a client making a claim against you, can imperil the future of your entire company. It may be the case, for example, that you gave guaranteed advice that turned out not to be so, or that your activities inadvertently infringed the rights of a third party. The frequency, extent and seriousness of such claims in the professional world therefore means that it often makes sound business sense to invest in professional indemnity insurance.
If you are looking for an appropriate indemnity insurance quote, you will have several key priorities. You will want to find insurance products that protect you from claims as a result of infringement of intellectual property rights, negligent misrepresentation or misstatement or intentional dishonesty on the part of your directors, partners and employees. You are also naturally likely to appreciate indemnity insurance that has been specifically designed for your own profession and that can cover several of your staff.
In addition, you may appreciate a policy that has been underwritten by a major and recognised provider of high quality insurance, if not also one that gives you the option to include several other types of cover to cater for your full range of professional needs.