1st March 2010
Professional Indemnity Insurance is very important. However, sometimes it can be very hard to understand. This, in turn, can make it hard for business owners to understand why they need the insurance or how much coverage they actually need.
This type of business insurance policy is for professionals who work in the type of industries that force them to be relied upon for advice on a professional level. The reason it is important for these types of individuals to have insurance like this is because many other people view them as an expert in their field. Therefore if a person takes their advice and loses many then they may choose to sue the so called expert for their losses. Some examples of these types of careers are accountants, attorneys, and psychologists. An example of a situation where you would need this type of insurance would be a tax accountant who does not get a customer’s taxes filed on time. Therefore the customer is charged a penalty and that costs the client more money. Because of this they sue the accountant. This type of insurance will protect against that. Professional indemnity insurance will cover most of your legal fees. How much it covers however, varies from policy to policy so be sure to check yours and be sure you have enough coverage.
Professional Indemnity Insurance will usually be the most costly policy to any business insurance that needs it. It can take upwards of 12 weeks to secure a policy and even when you do you cannot be sure you got the best deal on the insurance coverage. It is extremely expensive. Businesses and personnel who need it should always take the time to look around and ensure they get the best deal. This type of coverage should not be taken lightly. You will want to make sure that your policy covers all the legal costs and court costs should you ever need to use. This, in turn, can cause the premiums to sky rocket. It is a vicious circle that can only be broken if the individuals who seek it are willing to take the time to look around for a policy that fits their specific needs. However, once they do find one that fits their needs they will be thankful should anything ever happen.
Insurance is always a difficult subject to understand. There are so many different types of policies and it is hard to be sure which one you actually need. However, professional indemnity insurance is a type of insurance that, if you are an expert in your field, you should definitely look into. If someone loses money do to your advice you do not want to be left out in the cold without it. While it can be expensive taking the time to shop around will insure you get a good deal on your coverage. It will also play a huge part in making sure that you get the coverage you need. When it comes to this type of policy do not wait until it is too late.