Whether you're a freelancer, a consultant or run a small business, you may well need to consider professional indemnity insurance. However, many professionals don't know what this type of insurance is or why it's necessary. So, what do you need to know about this type of insurance and why it may be so important for your operation?
What Is Professional Indemnity Insurance?
Professional indemnity insurance (PII) protects you financially if something goes wrong in your work or the advice you give. It covers claims for alleged negligence and legal fees if someone sues you for damages due to mistakes you may make. For example, if you are an architect and design a building with structural flaws due to an oversight on your part, PII would cover the cost of repairs and any other associated costs, such as legal fees, should the owners decide to sue you.
Why Do You Need Professional Indemnity Insurance?
No matter how competent and experienced you are at what you do, mistakes happen—and sometimes, those mistakes can be costly. Having PII in place will give you peace of mind that if something goes wrong with your project, you won't have to worry about paying out-of-pocket for any resulting damages. Even if a mistake was unintentional or not malicious in any way, it could be very expensive for you to pay for the resulting costs without proper coverage in place. And these days, some clients will require that you have PII coverage in place before they start working with you. So if you arrange this type of coverage in advance, it can also open up more potential opportunities for work. Furthermore, you may need this form of insurance to help protect against mistakes or omissions that may be made by one of your staff members.
What You Should Do Next
No matter how confident or experienced you may be, mistakes happen. When they do, it's important for you to have adequate protection in place so you don't have to worry about paying out-of-pocket expenses that may result. So, to fully investigate your options, ask your business broker about this type of cover. You may already have public liability insurance in place, as this is considered an essential element in most situations. However, private indemnity insurance could be equally as valuable if something goes wrong and you're facing an angry customer looking for some form of compensation. Don't take the risk — contact a business insurance broker today.Share