These days, there are quite a few different types of insurance available for businesses. One policy you may not have heard of exist is professional indemnity insurance, but this is actually one of the most important. This is because it is designed to cover potentially expensive legal cases and lawsuits affecting your business.
Any type of company which has customers or clients can benefit from having a professional indemnity insurance policy in place, but what it is really designed for are companies which sell specific skills and offer advice to their clients and customers.
Solicitors are the perfect example of a business which needs professional indemnity insurance, and in fact is legally required to have it. Solicitors are in the business of giving advice to their clients, but clients sometimes lose money or make poorly judged business decisions based on this advice. If they perceive that the advice was bad or has gone wrong, they can sue their solicitors firm. If they win, the case could be worth thousands and possibly even millions.
Other professions which are legally required to have professional indemnity insurance cover are accountants, mortgage intermediaries, architects, financial advisers and insurance brokers themselves.
Typical professional indemnity insurance policies cover many different things, starting with negligence and bad advice. They also cover intentional or unintentional infringement of patent, copyright or trademark, as well as fraud, loss of important documents, civil liability, breach of duty and breach of contract, and libel, slander and defamation.
If you aren’t sure whether your business needs to take out professional indemnity insurance, think about whether there is even the smallest chance that one of your company’s customers or clients could decide to sue you for loss or damage. To protect the business, speak to a business insurance expert about getting professional indemnity cover right away.
Darren Tate is a widely respected writer who has been writing for 5 over years often writes on John Heath Insurance Brokers and a wide range of other subjects.