Professional indemnity insurance is a type of insurance that covers your business against potential incurred losses from having provided services that resulted in dissatisfied clients. This could be due to negligence from your business including unsatisfactory service you or any of your employees have provided that resulted in financial loss to the clients and intellectual property infringement such as loss or damaged data. You also need to inform yourself about the details of cover. The insurance will cover the costs incurred most of the time including legal costs from the lawsuit that is filed against you by your client.
Next, those who may require this type of insurance are health care or medical professionals, doctors, writers, investment bankers or private bankers, financial advisors, accountants, engineers and architects, or in short those who are in the professional service industry.
From professional indemnity insurance, you can actually get various benefits. The business of yours is covered against lawsuits and losses incurred because of negligence from your or your employees’ side. It’s hard to monitor your employees daily so this type of insurance can actually prove to be useful. You may still be held responsible for any legal rights towards your client even when you have completed the service several years back.
Also you need to keep in mind that professional indemnity insurance covers are usually based on the claims made. Have your old or previous insurer to arrange a new claims cover together upon your business closing or your retirement. It may be the case that they may not cover you for this but it’s worth enquiring for. You may need to sign a detailed service agreement. Outline the duties and responsibilities that you will be held accountable for towards the client and the coverage of their insurance.
There are plenty of insurers around if you are not happy with your past one and who can provide you with such a product for example AXA Professional Indemnity insurance. Why not obtain a free quote today?