Professional Indemnity Insurance is not an item that firms must carry by but it is however cover that a business in the professional services field should absolutely have. It will be something that will provide protection to the individual holding it and their business. It will also offer protection to that person’s clients and lend a general feeling of security to any and all associated with the particular business involved.
The fact of the matter is that any business that is providing a service to its clients is a candidate for this particular insurance. There is however an even greater need for this coverage when the services involved deal with accounting, financial planning and advising, surveying and certainly legal advice. As things have changed over the course of time, this insurance has become even more important to have than ever before. People currently involved in business enterprises on the internet are finding how important having this type of coverage is and will be moving forward.
The fact of the matter is that when it comes to the area of faults in business, business injury has truly come to be a claim that is a highly popular one. Basically what business injury involves is negligence on the part of an individual or business causing an omission or error in their promised service resulting in a loss to an individual related to their service.
Using accountants and the field of accounting is a great way to illustrate the importance of Professional Indemnity Insurance to its holders.
Basically, what accountants do is offer services involving critical areas of their client’s lives such as those issues related to their tax and financial reports to the government. A simple mistake made by the accountant on behalf of a client can have astronomical implications. Even if this was an innocent error made, the consequences to the client can truly be devastating and life changing. Having the proper coverage in place can literally save their business and allow them to proceed with their lives.
Another advantage for the accountant to have this coverage in place is that because of the sensitive and secure nature of their business dealings, they will be eligible for various discounts that may apply. And still another critical point to consider is the coverage they will be receiving involving any theft of important documents that may occur.
Other issues such as the legal expenses that might be involved regarding the loss or theft of various documents can also be covered under Professional Indemnity Insurance plans. In addition, any items involved in the storage or dealings with a client’s activities used by the accountant to monitor their dealings will be covered as well.
These examples have been offered using the accounting field as an example. It can easily be related to other fields if one looks at the various potential problems that may crop up.
The bottom line is that anyone remotely related to any of these areas should be making every effort to protect their interests by looking further into obtaining this coverage.