Suppose your business is all about giving your clients valuable advice on how to run their own venture. In that case, there is a big chance that some of those advice may get lost in translation. What this means is that they may make a wrong choice and end up blaming it on you, even though they were the ones who deliberately made the wrong interpretation about your helpful tips.
That being said, the liability may fall on your shoulders, thus, putting you and your own consulting business at risk. The good news is that you may apply for professional indemnity (PI) insurance that will protect you from any kind of liability or wrong claims from your soon-to-be-former client.
The question now is, how would you determine which professional indemnity insurance to apply for? Which one would work best for you. To help you out, below are some helpful advice.
Choosing a Perfect Match
First and foremost, you need to choose an indemnity that covers the types of business you are currently into. In any case that you expand your business in the future, it is vital for you to know that you can still count on the same coverage.
Furthermore, before you buy professional indemnity insurance, you need to be sure that you are you’re going to be able to pay the premium. Some indemnity policies have high premiums, and in the event that you have to pay it every year, you may find it hard to afford, especially if you just started your own business.
A PI Insurance That Knows No Bounds
Before you sign your name on the dotted line, you need to know what the policy will cover if an incident were to happen. For example, if you are an accountant, you want to ensure that the policy will cover your field of work.
The PI Insurance and Your Budget
Although it may seem impressive to get a cheap insurance, it may do more harm than good for your business. This is because it may have a lot of exclusions and limitations compared to its premium counterpart. In short, it may not really protect you from any kind of liability.
Splitting your costs in more than one insurance is a better way to go. Instead of getting one big insurance policy, you may go for more than one policy that can cover specific areas.
Doing Your Own Research
What you need to do next is to study the particular policy in the fine print to know just how extensive the coverage is. It may even vary, depending on the insurer you are working with.
It must cover any kind of liability you might have as an individual or as a business entity. Ensure that it also covers the financial, personal, and legal side of things.
Going One Step Ahead
In any case, it is always wise to get an idea as to which of your client may potentially cause you liability in the future. This can be achieved by asking around and doing a background check on the clients you will be working with. There is no definite way of doing this, and the results may vary from time to time. However, you are still better off being prepared than having to face a liability charge without warning.
Also, be sure to study the policy in the fine print to see if you are covered. This way, you will be able to determine just how extensive your coverage is and what type of legal liability you may be able to handle.
Conclusion
Professional indemnity insurance is a sound investment for anyone who wants to ensure that they will be protected from any potential or actual liability. In the end, having such protection means that you can conduct business with peace of mind, knowing that in the event that anything happens, your policy will take care of it.
In short, you must take all the necessary steps to ensure that your assets are protected at all times.
If you are looking for insurance specialists who will help you acquire the right professional indemnity insurance for your company, look no further than what we have to offer here at New Wave Insurance. We are here to help you find the right insurance for your assets, business, and vehicles with our comprehensive insurance options. Call us today and let us assist you in getting the best PI insurance for your venture.