Do You Need Professional Indemnity Insurance? Find Out Now
While you can afford not to purchase other insurance types, you should not overlook the importance of professional indemnity (PI) insurance, especially if you are a service provider or a consultant. Still you ask; do you really need it?
If you are an architect, solicitor, accountant, carpenter, plumber, business coach, or the like, you definitely need this type of coverage. Keep in mind that you are providing services for clients, which could sometimes go wrong. If complaints or a civil lawsuit will be filed against you, it is best to be protected against consequences that could drain your bank account and ruin your reputation. Therefore, if your career has higher chances of malpractice, errors, and damages, do not hesitate to seek expert advice from professional indemnity broker regarding your options.
Of course, to ensure that you get your money’s worth, you should shop for insurance that will meet your needs. Generally, a great PI covers the cost of compensation claim made by the client, as well as all the expenses incurred while defending the claim. This may include legal fees, if and when a simple complaint is taken to court, in which case you will need legal counsel or assistance from solicitors.
Be aware though that different insurers offer different policies and insurance plans, which is why you should acquire several professional indemnity quote and then compare each one of them. A typical plan would be valid for a duration of one year, with premiums based upon the portion of the daily costs incurred by you or your company. While the last part can vary from one insurance provider to another, this should give you an idea that there is no one-size-fits-all policy. A professional indemnity broker, therefore, should create a coverage that is tailored to your needs.
Speaking of which, the insurer should also guarantee that your PI will protect you against the cost of legal formalities and lawyers, and it should share the risk and save you from any untoward circumstances concerning your profession. More than anything, it should protect you from the three most common claims:
· Negligent act refers to any procedure or practice that led to damages and injury. As a plastic surgeon, for instance, it is your obligation to take proper care in performing the operation. Failure to do so is considered negligence on your part.
· Breach of duty is when you fell short of the standards expected under the circumstances. A professional consultant, for example, should act and deliver services to the highest standards. If you fail to do so, then you breached your duties.
· Civil liability is an obligation to settle any court-enforced payments following a lawsuit or court action.
Now that you have a basic knowledge of what to expect from a professional indemnity quote, choosing the best policy would no longer be complicated and stressful.
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