For any business or self-employed individual, it’s essential to protect your company from any form of risk. This is where professional indemnity insurance comes into play. Since you can become liable for damages to another property or person caused by your brand or business, having the right insurance can be extremely helpful. Read on to learn just how important professional indemnity insurance is, and you need it.
1. Restoring Your Reputation
If you’re ever put in a situation where your business may have caused some damages to other people or their property, your company’s reputation is put under a microscope. If you want to restore your reputation as soon as possible, getting professional indemnity insurance is key. This is due to some policies providing cover for public relations expenses that will allow you to restore your reputation. Coverage for public relations expenses is crucial as it will enable you to have the budget needed for your public relations firm. They are engaged to limit adverse effects or negative publicity from a claim.
2. Running Your Business Without Worries
A claim against your business for alleged unprofessional or inadequate advice, failure to exercise required skill, or breach of professional duty can be quite an expense. There’s also all the lost time and effort you had to put into attending a lengthy court case. This can severely impact your business operations, especially if you don’t have any insurance. However, if you have professional indemnity insurance, you can then ensure that the impact of the claim on your business is minimal and that it keeps operating whilst the insurers and your lawyers manage the claim. You can focus on running your business instead of constantly worrying about any claims.
3. Having Access to Legal Assistance
If someone makes a claim and you don’t have insurance coverage, seeking legal help can be challenging. It turns out, one of the perks of having professional indemnity cover is getting access to good legal firms that can help you with your case. This is because most reputable insurance companies have a network of legal firms that they work with for such occurrences. They are selected for their expertise in handling professional indemnity claims.
In fact, it’s common to see claims where the legal costs are just as much as the amount of compensation being claimed. Often, because these legal firms specialise in PI insurance claims, they may be able to resolve the matter quicker than what otherwise could be achieved.
4. Reducing the Cost of Indemnity Claims
Having insurance is an added expense, but it is a necessary one as it reduces the possible cost of not having one. It’s a form of protection that any business needs as it often reduces some of the more serious risks of operating a business. Many professions actually require this type of insurance as part of their respective industry body’s regulatory requirements. Even if you are not obliged to have PI insurance, you could be liable for thousands of dollars worth of legal fees and compensation payments without it. There’s also lost income from the time spent defending any allegation.
Conclusion
Professional indemnity insurance protects businesses from legal action for losses incurred due to claims for professional negligence. It can be quite helpful for you, especially if you’re facing a lot of expenses like legal costs, settlements and court orders or judgements associated with claims against your business.
New Wave Insurance works with several insurance providers to bring you the best possible solutions. We are one of Gold Coast’s premier insurance brokers helping businesses find the right insurance vehicle for them. Contact us today to book a free 15-minute consultation about professional indemnity insurance.