Professional Indemnity Insurance Explained in Simple Terms
Professional indemnity insurance is intended to protect professionals from allegation made by their clients. This insurance can cover legal fees involved in a lawsuit, as well as any resulting payments that are required. Lawsuits can be damaging to a business financially and also can damage their reputation, therefore this insurance for professionals is required by law for some people, and recommended for those that it is not required. Indemnity insurance can help ease the burden of a lawsuit against your company.
Designed to provide financial protection if someone sues the company because of a mistake that was made indemnity insurance can cover different things. Basic insurance will cover negligence, but more extensive professional indemnity policies can also cover breach of duty, civil liability, and loss of data amongst many others. Be sure you understand your coverage's when you purchase your professional indemnity policy for your business.
The professionals that are usually required by law to have indemnity insurance are doctors and lawyers. Many other business owners can benefit from this type of insurance, especially if their business is any kind of a high risk one. Even though the indemnity insurance is expensive, one lawsuit will cause the insurance to pay back your investment. Many professionals encounter more than one lawsuit over the course of their career, so having professional indemnity insurance will help you in the future, justifying the money that you will spend on coverage.
There are a limited number of insurance companies that offer professional indemnity insurance. The needs of your company will determine what type of insurance you need, and an insurance specialist can help you decide if you definitely need a policy. Once it is determined if you need a policy, they will help you to decide how big your policy should be and the situations that should be covered by the policy. An insurance professional that is knowledgeable should not be afraid to tell you whether professional indemnity policy is required or not, and if a limited policy would be better for them. If your insurance representative believes that another type of coverage or product would be best for you, then they will be able to suggest it to you.
If you are looking for multiple types of insurance for your new or existing business, you may be able to receive a discount on a package of products that will include your indemnity insurance. Packaging your insurance coverage together will also help you keep organized through only one insurance provider, making your life much easier when it comes to payments and filing and tracking claims.
A solicitor seeking protection under professional indemnity insurance is not something which most of us thought about being necessary until recent years. As the very name suggests, a solicitor is adept with his profession, with various laws and legislations that pertains to his area of expertise. In fact, the very status of a solicitor itself is a sure sign of authenticity and height of meticulousness, and he being charged for failure to deliver up to his standards is something which we never believed could be a possibility.