We’re now in a ‘no win no fee’ culture. Someone could blame your business for causing them a financial loss and claim against you to compensate themselves. Even if you follow health and safety protocol to the letter, accidents can still occur. With professional indemnity insurance, your business is covered if someone makes a claim against you because they found an issue with the work you did for them, or advice you gave.
What is Professional Indemnity? Here’s an example…
One of your staff has accidentally sent an invoice containing confidential client information out to another client. Their confidentiality has been breached, and they are suing you because you have shared their personal information with a competitor.
What did the Professional Indemnity insurance cover? In this case, the insurance covered the professional indemnity claim total cost of £35,000, including legal costs.
What did it NOT cover? The insurance excess, which was £250 in this instance. As part of the claim, this is what you pay, in addition to any other costs for damaged reputation.
If your business gives advice, offers a professional service, or handles data or intellectual property that belongs to a client, it’s important to consider getting Professional Indemnity insurance. By taking out this kind of insurance, you are protecting yourself against the cost of a claim for negligence or a mistake that costs the client money.
Claims could happen at any time, even if you’ve done nothing wrong. If someone made a false claim against you, do you have the funds at hand to pay legal fees? Professional indemnity insurance can help protect you and your business against this type of risk, so you can concentrate on running your business.