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  • Amanda Bird

Why You Should Have Professional Indemnity Insurance

Updated: Nov 23, 2021

It’s no secret that running a business is no easy task. No matter how long you’ve been running a company, there’s always a chance that something may come up that can interfere with your operations. Thankfully, you shouldn’t worry too much because having professional indemnity insurance will help.


Professional indemnity insurance is used primarily by businesses that deal in giving professional advice or services to clients. It safeguards a business from lawsuits in case an unsatisfied client files one. Because of its nature, it’s recommended that a company get professional indemnity insurance.


This article will shed some light on professional indemnity insurance and why a business needs it. Read on below to learn more.


More about Professional Indemnity Insurance


As mentioned earlier, professional indemnity insurance protects a business from lawsuits filed by disgruntled customers, but there’s a lot more to that. The insurance protects policyholders from claims based on acts of negligence or misinterpreted advice given to the consumer due to receiving advice from a professional worker.


The primary reason why professional indemnity insurance is recommended is that it allows for better settlements if necessary. Additionally, it will provide compensation for legal services and others incurred during the negotiations.


What’s Included in the Insurance


Professional indemnity insurance generally covers the following:


  • Compensation

  • Costs for investigating the claim’s intent

  • Costs incurred for defending a claim

  • Costs for court attendance

  • Proceedings for disciplinary actions


The Benefits of Having Indemnity Insurance


As you go through the day-to-day running of your business, you will run into unexpected situations and difficulties that will challenge your wit. With professional indemnity insurance, you will experience the following benefits:

Provides Peace of Mind


If you have insurance, you can rest easy knowing that you will be protected from a lawsuit. People often misinterpret professional advice from something that’s required to be done, leaving you with no choice but to deal with it in court. Professional indemnity insurance helps because it’s guaranteed protection from any immediate claims that you were negligent towards clients in your practice.


Saves Time and Money

Having PI insurance allows policyholders to save valuable time and money because it helps them take swift action if they get served with a lawsuit. There won’t be a need for lengthy court trials and attendances because the insurance will take care of everything.


Gives Protection from False Claims


With professional indemnity insurance, any business won’t have its reputation ruined because they’re protected. It ensures business owners that their work will remain unaffected despite various allegations.


Accounts for Monetary Compensation


Business owners who want to make reparations towards clients for a more peaceful settlement can give monetary compensation through Professional Indemnity insurance. The best thing about this is that the owner isn’t required to pay for any additional expenses if this will be the course of action.


Conclusion


In essence, professional indemnity insurance will help cover any risks and hazards that can threaten their business practices. It’s best for companies in this line of work so that they can deal with any issue faster and more decisively.


In a line of work that involves giving professional advice—such as healthcare and financial services—there’s always a chance that clients might misunderstand your words and actions. If their negative claims are valid, there’s a high chance the legal implications can force a company out of business.


Thankfully, New Wave Insurance offers policies for various types of insurance for your business, including professional indemnity insurance. Our insurance ensures that you’re protected from all entities that seek to damage your business’ image in the Gold Coast—all for a reasonable price. Contact us today for a free consultation!


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