Professional Indemnity Insurance
Professional Indemnity Insurance
We live in a world of collaboration in business, and outsourcing has become more popular than ever. This has opened the door for companies to interact and collaborate with an array of different freelancers and individuals. And while this is great for businesses, it does also raise other issues, such as problems arising from poor advice, services, or designs, which can lead to legal action being taken. This is where professional indemnity insurance comes in, and why it is so important for so many business individuals these days.
As a professional your reputation is everything. and the advice you give is the key to your success. Whether you are a solicitor, accountant, architect or even a photographer you could be liable if the advice you give is not correct. But things can go wrong. This is where the need for professional indemnity comes in.
What Is Professional Indemnity Insurance?
Simply put, professional indemnity insurance is a premium that provides cover for the legal cost and expenses you might face in a scenario where you are facing court action on the part of a client or business. Additionally, it will provide cover for the compensation made payable to your client in order to cover your alleged mistake. Regardless of the length or amount of professional experience you have, there is always the risk of making a costly error or mistake, so this is something you need to have cover for.
Simply put, professional indemnity insurance is a policy to cover the advice you give as a professional. In today world, errors and omissions can potentially have far reaching consequences for your business and reputation. Professional indemnity provide cover for advice that doesn’t meet the client expectations. From allegations of a breach of copyright to accusations of defamation, these kinds of claims can be costly and disruptive regardless of whether they're fair or not.
Why You Need It
There are plenty of great reasons to get this insurance, but one of the key ones is that it is going to save you, and your business, a great deal of money. Some sectors actually make PI insurance a legal requirement, solicitors and accountants to name two. We’re sure you enjoy a good relationship with your clients, but PI gives you a safety net for the absolute worst-case scenario you might possibly encounter.
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