Every professional owes a duty of care to the person or firm he is rendering services to. However, as they carry out their duties, an error or omission may arise and have dire consequences to the client. For example, a doctor or nurse may give the wrong blood type to a patient resulting in loss of life; an engineer may quote for the wrong number of materials for a site resulting in project setbacks, and a financial consultant may offer inaccurate advice to a firm resulting in an investment decision that leads to financial loss.
The purpose of Professional Indemnity is to come to the rescue of professionals in such eventualities.
If you provide professional advice or services to your clients, you should consider professional indemnity insurance.
While most companies have solid relationships with their clients, a project error can completely disrupt the working environment. If a client suffers a major financial loss as a result of your negligence, they will almost certainly seek compensation. Architects, IT experts, healthcare workers, recruiting professionals, and Financial advisers are among the professions that may require PI coverage.
• Your legal defense
If a customer files a claim against you, you’ll have to defend yourself in court, whether or not the claim is valid. The legal fees linked with the lawsuit will be covered by Professional Indemnity.
• Compensation
If a customer wins their case against you, they will almost certainly be compensated for the money they lost as a result of your advice. They may also be entitled to compensation. A Professional Indemnity policy will cover both of them.
• Run off insurance
Even if your company is closing down, a claim may arise unexpectedly in the future. The purpose of run-off insurance is to ensure that these claims are still covered and that you are not held responsible.
Consider the following factors when determining how much professional indemnity insurance you require:
You may also consider the worst-case scenario of making a mistake on a client’s project and estimating the expense of correcting it. Remember to include in any legal fees and losses that your client may pay as a result of the inaccuracy.
With the uncertain climate in which we live today, setting aside some funds to cover you from the risk of the unknown will save you a lot in the long run. As the saying goes, “A stitch in time saves nine.”
With over 40 years of experience, Statewide Insurance Company Ltd has the expertise to ensure that all your insurance needs are met to your satisfaction. Contact us on mail or in the chat box to get a quotation or more information about this insurance policy.