What is Professional Indemnity Insurance and why is it necessary?

November 23, 2012 | by | 0 Comments

When we enter the world of business we enter a spider’s web of interconnected finances and ideas; we’re dependent on the people we work with and alongside for mutual gain and when this goes wrong we can be left exposed to expensive legal claims.  This is why Professional Indemnity Insurance is so important.

Professional Indemnity Insurance is an aspect of Business Insurance that covers us against any claims that may be made due to professional malpractice.  It’s a type of insurance that applies particularly to those who provide consultancy services or professional advice; think architects, financial services, planners, accountants, agencies, designers etc.

Professional Indemnity Insurance is particularly important for businesses that provide consultancy services or professional advice, such architects, financial services, planners, accountants, agencies, designers etc

Professional Indemnity Insurance is particularly important for businesses that provide consultancy services or professional advice, such architects, financial services, planners, accountants, agencies, designers etc

The success of a business depends on us connecting with the businesses and finances of partners and clients.  The more we involve ourselves with clients and business partners, the more our business will probably grow but conversely, the more we are left open to legal claims.

The modern world is full of claims and counter claims with access to no win no fee solicitors being nearly pushed upon us.  This can be both good and bad, but it does mean we have to take particular care when conducting our business affairs.  The best way of doing this is obviously to take the utmost conscientious professional care but sometimes even this isn’t enough.  You need to legislate against all eventualities and take out a comprehensive Professional Indemnity package as part of your Business Insurance policy.

Companies like Endsleigh  provide policies where the levels of cover range between £50,000 and £2million.  The sheer scale of these figures should highlight the importance of not just taking out Professional Indemnity cover, but taking out a tailor made package for your business.

Business Insurance is designed to cover you against all of those additional pitfalls of owning a business.  Unlike most Home Insurance policies, Business Insurance broadly tries to cover you against potential liability to your fellow human beings and Professional Indemnity is an important part of it.

Category: Business

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