Also commonly known as professional liability cover, professional indemnity insurance is essential for covering you and your company when engaging with clients. If your service or product is related to advice, design or input to your customers and clients; indemnity insurance is there to ensure that you don’t feel the sting when things go pear shaped.
The perks of indemnity insurance include the financial cover of expenses and legal costs, when it comes to claim defence from a client. Compensation is also under the umbrella of cover should you lose the case and be forced to award a financial outlay.
Many businesses neglect investment in professional indemnity insurance because they have fantastic relationships with their customers and clients. Even if you repeatedly satisfy your clients and your work is of the highest standards, it’s still worth the consideration. If you utilise consultants or sub-contractors, you may find that your clients are passing on a claim made against them to you; their supplier. Many professional services label indemnity insurance as a necessary prerequisite for doing business; you stand to lose money if you don’t have the cover.
The culture of suing has been seeping its way into Britain for the past decade or say, a nasty by-product of our friends across the Atlantic. If you find yourself defending your business in the courts, do you have the resources to properly address the issue and defend with the appropriate force? Even if you do, the disruption to your daily working life (not to mention the stress) can have a major impact on your business. Professional indemnity insurance provides the right kind of screen to deflect all of these problems away from you, from the smallest mistakes to company-wide theft.
When it comes down to it, how much would you pay to avoid being sued for millions upon millions of pounds? The number may seem drastic but the larger your business, the more you can expect to be squeezed for. Your business is at risk every day when you conduct trade and services, the slightest hiccough can become an avalanche of complex legal issues which can really dent your bank account and reputation. Even the most streamlined and optimised quality control programs can have bad days; it’s not worth trusting to luck that you’re going to get away with a mistake. Investing in professional indemnity insurance can mean the difference between building the perfect retirement for yourself or crashing down with years of hard work being undone in moments.