Does your business offer advice or professional services to other businesses? If so, then taking out professional indemnity cover is a must.
Professional indemnity insurance helps protect you from any claims that are made from dissatisfied clients. No matter how much experience your firm has, there is always a chance that a mistake can be made. This is why having professional indemnity insurance is so crucial, as it will cover you for any costs involved in compensating a client if a mistake you’ve made has caused them to lose money.
There are many different business sectors where professional indemnity insurance is necessary to meet regulatory requirements. These include engineering, accountancy, surveying and any profession that works on a contract basis, such as a business consultant. However, even if your business sector does not require you to have professional indemnity insurance by law, if you get in a situation where a dissatisfied client is making a claim against you, the right insurance will prevent you from having to pay potentially huge sums of money for compensation or legal fees.
Deciding what professional indemnity insurance limit is required will depend entirely on the circumstances of your business. However, an effective way to get an idea of your limit is to consider a worst-case scenario of what the cost would be if you did make a mistake and had to put it right. Don’t forget to also take legal fees into account in your estimation.
Shearwater’s expert staff can help you with this decision. Contact us to find out more.
If you are still confused by professional indemnity insurance or simply want to have a chat about your situation, feel free to call us on 01992 718666.