If you have worked as a professional in the past, or are currently earning money from your business or profession, it’s worth considering whether you should get indemnity insurance.
What is Professional Indemnity Insurance?
Professional indemnity insurance is a type of business insurance, which covers a business, or professional, for any liabilities that may arise from their work.
The idea behind business or professional indemnity insurance is that when you are working, you are making mistakes. You may also be at risk of breaching confidentiality and even infringing copyright, trademarks or patents. Now, many of these mistakes, breaches and infringements will not have any consequences, but some will.
Indemnity insurance covers you against a number of different types of claims. The types of claims that are covered by an indemnity insurance policy will depend on the type of business or profession that you are involved in.
Why Do You Need Professional Indemnity Insurance?
1. Provides Financial Support
Indemnity Insurance provides financial support to those who are facing a claim. If you are sued by a client, the insurer will pay your legal fees, court costs and any damages that you have been ordered to pay, up to the maximum of your indemnity insurance policy.
It is important to note that indemnity insurance does not cover you for any relevant costs that you have to pay to get your business or profession back up and running again. This includes the costs of damage to property or the loss of income.
2. Protects Your Professional Reputation
Indemnity policies protect you against claims that can damage your professional reputation. When a client sues you, indemnity insurance can provide financial support, so you can focus on doing your job and repairing your professional reputation.
3. Get "Any One Claim Policies
Indemnity policies are typically purchased as "any one claim policies". This means that the policy only covers one claim at a time. So if you get another claim, then you can still have coverage for that since it is considered a separate claim, and therefore meets the $100,000 limit.
4. Peace of Mind
Professional indemnity insurance gives you peace of mind, as it covers you against claims that can arise from your business or professional work. These include:
Breach of confidentiality;
Intellectual property infringement;
Patent infringement;
Unintentional error on the part of the practitioner
Libel or slander;
Breach of duty;
Negligence;
Fraud;
False advertising;
Malpractice;
Client negligence;
Negligent damage or loss;
Product liability;
5. Ensures a Smoother Running of Your Business
Indemnity insurance helps keep your business running smoothly, as it:
Covers you against claims that may arise from your business or profession;
Helps to pay your legal fees and court costs;
Pays any damages that you have been ordered to pay, up to the limit of the policy.
The Bottom Line: The Importance of Having Professional Indemnity Insurance
Professional indemnity insurance is an important part of the running of any business that deals with people. It allows you to focus on your job, knowing that you are covered for any claims that could arise from your work.
Contact us today and talk to one of our trained specialists about your business insurance needs and how we can help.
How Can We Help You?
The holidays are fast approaching, and it only makes sense that you take the right steps to ensure your business is well protected. And the best way to do that is by getting business insurance.
New Wave Insurance helps you find an insurance policy that fits your needs. From assets to your business, down to your vehicles—we've got you covered. Learn more about how we can help you today!