Every professional would never want to be dumped and accused of doing unethical and unscrupulous acts by a client especially if those things are not true. Being indicted as doing such unacceptable acts will cause a great damage to the person’s professional career as well as reputation. Good thing, there exists a professional indemnity insurance. A type of insurance, Professional Indemnity Insurance is intended to protect your professional career from clients who are trying to financially cripple you as well as damage reputations.

Who are the possible candidates for Professional Indemnity Insurance?

Professionals as well as businesses can avail of the said insurance. It will keep them protected and maintain their respectability and good reputation in their industry. Certain law requires some professions to have this kind of insurance and encourage others to avail of it since being faced with a lawsuit is not only financially crippling but also can severely damage reputation.

Some of these professions are architects, insurance brokers, mortgage intermediaries and financial advisers. Other industries where Professional indemnity insurance really is beneficial are for the engineers, architects, graphic designers and to those who perform service and distribute products in return for a fee. Insurance like this is very much needed considering that in everyday operations of businesses and work of professionals, disputes and arguments with clients can never be avoided so it’s a good thing to keep them protected and insured from all the malicious and destructive accusations.

What usually are the things being covered by the Professional Indemnity Insurance Policy?

Professional Indemnity Insurance is intended to cover professionals in case that someone incurs mistakes and in turn the client sues and insist for a claim. Some of the common dangers that your career can be exposed to and is covered by the professional indemnity insurance are:

• Intellectual property- refers to the inadvertently infringing of the different products of the mind like literary and artistic works, inventions, symbols, designs and images which are used in commerce.
• Negligence- or a person’s failure to act with reasonable care which brings about damages
• Dishonesty- which refers to theft of the clients money
• Loss of documents/data- lost as well as damaged and stolen important data owned by the client.
• Civil Liability- this includes legal obligations which brought about breach of contract or tort that is classified not as criminal act. These also included libel and slander.

This kind of insurance typically protects your skills and career. There are some clients who would made use of your profession and your skills for their advantage. It covers professionals for legal costs that may arise when a client files a lawsuit against him. Professional Indemnity Insurance also includes the possible compensation needed in case that he loses the lawsuit.

What will cost you to avail of the Professional Indemnity Insurance?

The cost of the premiums is indeed high particularly for those professions with high risks, however, the benefit of the said insurance surely compensate the costs. The insurance is determined based on the percentage of the company’s total legal spending.

What Professional Indemnity Insurance Policy will fit for me?

Different businesses as well as professions have also different needs. Thus, it will be important to go to a reliable insurance company or to get the advice of an insurance specialist in order for you to know whether you will really need a policy, what types of circumstances that will be covered by your policy, how large it should be and other basic information about your policy plan. Good Insurance Professional can provide the client suggestions, opinions and advices on the insurance plan and the available coverage.