Whats Is Professional Indemnity Insurance
Anyone who designs, gives advice or gives similar kinds of services and does this in a professional way, is viewed by clients as being an expert. In this the 21st century, it is not uncommon - in fact it happens regularly, when one feels that they have received substandard service. Therefore, the need for Professional indemnity insurance has become high and continues to escalate. Examples of those who need professional indemnity insurance are: Security Consultants, Private investigators, expert testimony witnesses and arson/fire investigators. Some professionals feel that this kind of insurance is not needed and too expensive; however, court awards in the last decade have increased if you don't have insurance, you and your business could be in danger and your reputation displayed in a negative light.
Examples of the kind of lawsuits that can occur in these kinds of professions are: slander, negligence, libel, breach of duty, stealing company secrets, dishonesty, and intellectual property infringement. It is important to note also that with professional indemnity insurance that sometimes the full meaning of what it provides, is misunderstood. Some think that this insurance covers only the experiences of the business--experiences that end up giving substandard work for the clients. This is untrue because anyone can sue anyone over just about anything. And, even though the person or business ends up losing, the public is given a disjointed view of the business and that can ruin a reputation.
Professional Indemnity Insurance can protect you and your business by covering you, should you make a mistake in the kind of services you give; especially if the mistake leads to a dispute. Should the mistake become complicated and argumentative, you will certainly need to be defended. Insurance provided in this kind of policy will also cover the cost of taking care of any error on your part. This, in turn, could avoid a much larger claim. Also, with professional indemnity insurance you are protected if you damage or lose your client's documents or if one of your employees steal your client's money or other assets. In addition, this kind of insurance will also give you legal teams who are specialized in defending claims in court, avoid legal costs that are high and protect your reputation.
It is important to note that the professional indemnity insurance policy must be in place when the claim is made, not at the time the incident occurred. The policy must be done in this manner in order for the claim to be accepted by the insurance carrier. To conclude, it is suggested that professionals whose work experience spreads over several years are advised to extend their coverage years after they have retired so that they can remain protected against incidents that occurred in the past.
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