Professional Indemnity Insurance
We always hope that everything goes well at our office and we would always like our clients to be satisfied with the services and products that we offer them. However, this is not true always and sometimes things do slip out of our hand and clients might turn against you if they have been offered information which resulted in financial loss at their end. The purpose of professional indemnity insurance is to safeguard you against such unforeseen circumstances.
Now, the question arises as to who can go in for the professional indemnity insurance. Financial professionals such as accountants, private bankers, financial planners, marketers, web designers, medical professionals, etc. can all go in for this insurance and this helps you to be protected and also offers the safety cocoon against bankruptcy or any other legal action. Other professionals such as architects, designers, engineers, consultants, finance and mortgage brokers can also apply for this insurance.
The professional indemnity claims can be filed for any situation where in which the client has incurred financial loss for any professional mistake on your part. This insurance is a type which insures your skills and works in favor of you when clients go against you for any kind of wrong expertise from your part. This insurance also covers part of the compensation which may result if you lose your lawsuit.
Many a times lawsuits or problems may arise in later years after you have taken your policy and by that time, the cover may have expired or might have been cancelled by you, in which case, the insurance will not cover for your problems. It is important that you always renew your policy and keep your professional indemnity insurance up to date as unfortunate incidents are unexpected and you may never know what might occur and when. Also, you need to also be careful when you change your insurer and if a claim is made between the times you switch from the old insurance company to the new one, then obviously it will prove to be difficult for you to get in the compensation from either of the companies. Thus, whenever you plan of switching make sure you ask your new company what they have in store for you if such a scenario were to happen.
The professional indemnity insurance covers offers a wide variety of coverage and additional benefits and the insurance premium is actually decided based on the percentage spent by your company on the legal proceeds. Usually, the insurance rates will be in the range of 0.5% to 1% of the total cover.