Professional Indemnity Insurance is a very important for all those businesses and services that offer professional advice to their clients. It is a financial product that is designed to compensate your business against any damage that may accrue from a claim made against your business for neglect of duty, errors or omissions. What this means is that a PI Insurance covers your business against any loss that may occur due to the negligence caused by your business.
Who can be covered under Professional Indemnity Insurance
All businesses and professions that offer professional advice should consider taking a PI Insurance. Some of the professions include architects, solicitors, insurance brokers, engineers, computer consultants, accountants, independent financial advisors and others. Even organizations that provide professional advice as a part of their service should also consider taking a Professional Indemnity Insurance cover. There are some professions that are mandated by law to take a PI insurance cover. These include financial advisors, solicitors, accountants, environment consultants, building surveyors, etc.
Need for PI Insurance
PI insurance is an ideal Risk management insurance product that protects your business against any loss arising out of professional negligence. Without this insurance product it can be very difficult for companies and individuals who may be exposed to huge claims by unhappy clients. This may destroy you financially and tarnish your reputation in the market place. With growing customer awareness, there is a huge raise in customer expectations as well. This at times can lead to a dispute with clients. Having a Risk management insurance protects your business against such risks. There are times when you may not be at fault but the fact is it can cost you a lot of money to defend yourself legally by way of fees and other expenses.
When can PI Insurance help you?
A Professional Indemnity Insurance cover can protect your business against claims made in cases of professional negligence on your part, breach of contract from your side, any kind of libel or slander, loss of data provided by the client, any unintentional infringement of intellectual property rights that may cause a loss to your client or if any of your employees are guilty of misappropriating your client's money.
In the current market scenario, it is important that you safeguard your business against any kind of claims made by clients. If you are not covered for PI Insurance, you should seriously consider contacting a reputed provider for Professional Indemnity Insurance.