While some professionals require professional indemnity cover by law, some others purchase it to protect their businesses. This type of insurance is beneficial for professionals such as doctors, lawyers, allied health professionals, financial advisors, accountants, and web designers who provide their clients with recommendations, advices, and other services.
It is a fact that getting PI insurance always gives you peace of mind. You can concentrate on building your career and business rather than worrying about allegations made by your clients. Like all other insurance policies, it makes your life much easier. When you purchase PI insurance, paying off the compensation for the claims becomes the sole responsibility of the insurer and not the policy owner. If you don’t have the right cover, you might need to pay thousands of dollars in compensation for your client which you can’t simply afford.
When a claim is raised against the policy holder, an investigation needs to be done to figure out the actual reason behind the claim. A report is also required detailing the real issue, when it happened, adverse effect on the client and so on. If you have PI cover, the insurer will carry out this investigation and prepare the report without any out-of-pocket expenses. Also, the legal costs are covered by the policy. As you know, hiring a lawyer is not inexpensive, but your policy will provide you with enough money in such situations.
Your PI policy not only provides right cover for you but all other staff including trainees, contractors and vendors working for you. This means, even if a client makes a claim against one of your employees, it will be covered by your policy. As an added bonus, each employee will not need a separate policy. They will get enough coverage from the insurance policy purchased for the business. When you run a business, you might also need to spend more time preparing for the future growth of the company. You won’t be able to do this if you have to run around settling claims. In such cases, the policy acts as a time saver.
Interruption of your business even temporarily may not be affordable for you especially in tough times. So you will need the best policy to keep your business running smoothly. Temporary loss of income is another problem you may face when your business is interrupted. Professional indemnity cover is of utmost importance when you consider the fact that bills and salaries will not wait until your business is back to its original state.
