Why do you need professional indemnity insurance?

Professional Indemnity Insurance is vital for every business. However, it is of particular importance to those professionals who provide advice for a living. It is an essential type of cover for a company. However, it is particularly relevant to those in professions that provide information for a living.

 

What is Professional Indemnity Insurance?

Professional Indemnity Insurance will protect your business against claims for losses incurred by a third party due to the professional services that your company has offered to said third party.

 

Why is it essential to retain Professional Indemnity Insurance?

There may be occasions that result in your business inadvertently breach the privacy or confidentiality of a third party. You may accidentally overlook information due to an error of judgment or in some cases, provide the incorrect advice. This simple act, mistake, or oversight can result in a claim against your business. This is why it is vital to protect both your professional reputation and your business

 

Do you need Professional Indemnity Insurance?

Any professional who offers advice where an indemnity could apply, such as an engineer, bookkeeper, lawyer, accountant, marketing specialist, or architect, should apply for cover. Businesses who provide services of a hands-on nature are in less need of such protection.

How important is your reputation?

For most professionals, their reputation is the cornerstone of their businesses. As a consequence, they should never overlook the importance of being able to defend this in court.

 

Loss of your reputation can result in the loss of your business. If you do not have the correct cover, you might be denied the opportunity to defend it. The costs of such a case tend to make people want to settle any litigation as quickly as possible. This might seem like the best option at the time, but once word of a settlement is leaked, how will this impact your reputation. If you have professional indemnity insurance, you will not have to worry about this. The cover will allow you to defend your reputation for as long as it takes to clear your name. Visit our website to know more about indemnity insurance https://www.iselect.com.au/business-insurance/professional-indemnity/