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Many people seem to be very skeptical about the need for professional indemnity insurance. They do not seem to realize how much of their hard earned money they stand to loose if someday a customer or client is to file a claim against them and win it. There are multiple reasons to get professional indemnity insurance and this article is to put some light on them.
Big Claims
Statistics show that over the past few years, the claim amounts awarded by courts have been gradually and steadily increasing. This means that you can’t take these claims lightly anymore. People are still under the impression that loosing the claims will cost them less than getting insurance. It’s time to get a reality check. The claim amount is often awarded by a court can be big enough to actually cripple a business if it is found to have caused grievances to the customers.
What does it cover?
Professional indemnity insurance covers a lot more than is understood by the name. It does not only cover the claims against a business for the quality of their service but also covers a wide range of other things which may have been a result of individual mistakes and not of the business as a whole.
Professional indemnity claim does not protect you only from simple claims; it also protects you against a number of other kinds of law suits like slander, libel, divulging company information, negligence and breach of duty, dishonesty and also intellectual property infringement.
In case of a dispute about the kind of services you offered and what you actually provided, professional indemnity insurance stands to protect your interests. A good thing to note about professional indemnity insurance is that the policy should be in effect at the time of the claim and not necessarily at the time of the incident. Though, you should make sure that the policy will cover that particular kind of incident which happened.