The fact that you are an expert in your chosen field does not mean that you are infallible, mistakes can and will happen. It is knowing how to protect yourself from the repercussions of any mistakes that can make the difference between continued business and bankruptcy. Professional Indemnity Insurance (PI Insurance) is what you need to have in place to ensure that you are covered against all eventualities that may result from an error of judgement in your business practices.
What Is Professional Indemnity Insurance?
In simple terms PI Insurance covers and protects your business against any potential losses incurred as a result of any litigation against you, brought by clients that have been unsatisfied with the service you have provided that has resulted in a loss to them. PI Insurance also covers infringements to any intellectual property like copyrights, any damages to or loss of data pertinent to your clients and any theft perpetrated by your employees. PI Insurance not only covers the costs your business incurred defending any litigation brought against you it also covers any costs incurred should you lose your case. Those businesses involved in any service related industry can obtain PI Insurance; this includes business professionals such as financial advisers, architects, engineers and consultancy services.
The Benefits of Professional Indemnity Insurance
With PI Insurance businesses are protected against any losses incurred as a result of law suits against them, or through negligence of employees. Not only will the cover protect you against litigation it will where necessary also cover the expense of putting together a panel of expert witnesses for your defence, should you feel that the claim against your company is false. Court costs and any other losses incurred during the course of the litigation are also covered, meaning that you can continue to carry out your business without having to fund an expensive court case. To ensure you obtain the right cover for your business speak to a specialised PI Insurance broker about your requirements. The cost of obtaining the cover your business needs should work out at approximately 0.5% – 1% of the total coverage required.
PI Insurance should be taken out by any business that offers advice of any sort. The benefits of taking it out far outweigh the cost.