Professional Indemnity Insurance is an insurance policy that covers your business in the unfortunate event that a client makes a claim against you. Certain business professionals, from accountants and architects to solicitors, are required by law to secure Professional Indemnity Insurance, while others who are members of a regulatory body are strongly encouraged to take out a policy.
As a whole, it is highly advised that business professionals obtain this insurance, since a claim against your business – which could consist of anything from giving advice that results in your client losing money, to a confidentiality breach – could cost you and your business dearly.
WHAT LEVEL OF PROFESSIONAL INDEMNITY INSURANCE DO I NEED?
Your policy should cover claims made against your business and the defence of any disputes, so the level of Professional Indemnity Insurance (PI Insurance) you purchase will vary depending on the size of contracts you are involved in and may even be determined by your regulatory or client requirement.
When choosing a limit of indemnity for your PI Insurance it is best to consider what you could stand to lose from a dispute. However, ultimately you must satisfy yourself that you carry sufficient cover to meet any allegations which may be made against you. If you are unsure as to what level of insurance you should purchase, you can speak to the experts at Cavendish Munro.
While I hope that you never need to make a claim on your PI Insurance, it is far more beneficial to purchase the right policy from the outset, rather than find yourself in need without cover. If you don’t act today and get you and your business protected with PI Insurance then you could find yourself in heaps of trouble and debt tomorrow!