How professional indemnity insurance works
If you want to protect your business and reputation you need to have adequate professional indemnity insurance or PI insurance. It is vital to cover your financial and legal responsibilities if you provide services and other professional advice. If your negligence has caused serious financial loss to your client, they can submit a legal claim against you.
PI insurance can help you cover up the damages that are awarded against your business, for legal costs defending against your spurious claims and any other cost that is awarded against you.
How PI risk is assessed?
When you insure your business for professional indemnity, insurance underwriters will normally access.
1. The nature of business.
2. The industry where your business operates.
3. Total business income.
4. Amount of indemnity cover you need.
5. The amount of excess payable.
6. The risk profile of your business.
No two businesses are same and quotes may vary significantly. So it is always advised to compare different providers and make sure you are getting the right deal at a comprehensive price that you can afford.
PI insurance will cove me for
1. Neglect, error or omission including breach of contract.
2. Dishonest, criminal, fraudulent or malicious acts or omission of any person employed at any time.
3. Unintentional breach or unauthorized use of confidential information.
4. The publication or utterance of a libel or slander
5. All cost incurred in replacing and restoring any document on your behalf.
6. The negligence of specialist consultant acting on your behalf.
7. Any retroactive cover for all the work.
Always check your full policy wording to know what you policy will actually cover you for. In today’s litigious world, your business is often exposed to all manner of risks, so it pays to have the best and most comprehensive cover you can afford. For that you can even consult some good broker like from first insurance solutions. They can help you know your options and have the right policy planned for you so that you are able to secure your business against any financial fall outs. Either you need construction indemnity insurance or are interested in knowing about professional indemnity insurance for engineers, here you can find the complete help in this matter.