Professional indemnity insurance covers many issues that can impact a business, particularly matters of error and negligence. It is a type of insurance that offers protection to a business when it has made even an honest mistake.
If a business is involved in offering its services to another business, then sometimes things can go wrong. The business that has employed the services of another company may lose out financially through no fault of its own. It will understandably want to be compensated for any loss through negligence or error by the other party. A business that is covered by professional indemnity insurance will financially be able to resolve the issue in the event of its being sued. Legal costs will also be covered by the policy.
An example as to why professional indemnity insurance can be important to professionals and businesses alike is, can be seen in the instance when a business hires an accountant and that accountant makes errors. Those errors could prove to be costly for the company that has employed him.
If the accountant is not covered by professional indemnity insurance then matters of redress become more complicated. Thus it makes sense for any business to always check that any professional that undertakes work on their behalf, is covered by professional indemnity insurance before they employ them.
The types of issues that professional indemnity insurance will cover include cases where there has been an act of negligence, human error, or omission. In a case where documents or data have been entrusted from one company to another and have subsequently been lost or damaged, professional indemnity insurance will cover the loss financially.
Any unintentional type of damage done to a reputation, such as slander, libel, defamation, or misuse of information and breach of confidence are covered by professional indemnity insurance too.
Unintentional infringement of the intellectual property rights of another business can be an unpleasant business for both parties, but professional indemnity insurance will cover the business that has been accused.
So who would normally take out professional indemnity insurance? Accountants, various types of consultants and advisors, journalists and architects all regularly take out this cover. Professional indemnity insurance is something that should also be considered by any business that undertakes work on behalf of another.
We understand that alongside the day to day running of a business, it can be difficult to find time to allocate to finding the right policy. However, we’re committed to helping you find cover that best suits your needs.