Professional Indemnity Insurance is not generally required by law for many firms and is something that any business who works in the professional services industry should have. This insurance will provide coverage to protect you and your business as well as your clients and it offers a feeling of security to all people involved in the business.
Professional Indemnity Insurance is essential to any business providing a service however it is a bit more important to certain industries of business. Lawyers, surveyors, financial advisers, and especially accountants have a most need. With the change of times and the advancement of certain industries this insurance is becoming vital for more businesses than ever before. Even people in internet business, e-commerce and similar are finding a need to have this coverage provided through insurance policies.
Professional Indemnity Insurance is a very important insurance that is actually quite simple to understand. This insurance is easily obtained which means there is no reason why any business should not have a coverage policy.
Business Injury has become a highly popular claim when it comes to business faults. Business Injury is generally when a business or individual has been negligent, made an error or omission in providing their service which resulted in a loss for the recipient of their service.
Let us take accountants and use them as an example as how Professional Indemnity Insurance is vital to their business risk management strategy.
Accountants offer a service to others which involves keeping, updating, monitoring, and auditing their financial records as well as handling their financial and/or tax reports. If an accountant were to make a simple error in their reporting it could cause the person receiving the service a major financial downfall. Even if the accountant made the error on accident or by omission they are still going to be legally liable for the loss the person has experienced. Having Professional Indemnity Insurance will provide coverage for this and the insurance company will handle the settlement leaving the accountant to their other business issues. This insurance is notorious for saving accountants time and money when they make these errors.
Since accountants keep highly confidential records in their office this insurance is also beneficial in the fact that having it alone will give the accountant a discount for good security services. It also provides coverage for theft of documents which is essential to accountants especially in regards to privacy issues due to the missing documents.
Professional Indemnity Insurance also covers defense costs and legal expenses which may be needed in the event of loss of documents, theft and other legal matters. Accountants invest in a great deal of equipment and accessories which remain in their office building, all of which will be covered under most any standard insurance of this type.
So as you can see, this insurance is essential to those in the accounting industry however it may be just as vital to your industry as well. Obtaining Professional Indemnity Insurance is quick and simple so there is no reason why your business shouldn’t have it. Protect your business and its success with a Professional Indemnity Insurance policy that covers your needs.