One decision that a professional must make when going into business is what kind of insurance coverage to obtain. Some professionals try to save money by not taking out any type of insurance. While this might save on some expenses, it can actually be financially devastating in the long run. Having Professional Indemnity Insurance is a benefit for a business.
The intent of Indemnity Insurance is to help with expenses that could occur should a client make a successful claim. Let’s face it today people are much more apt to file legal claims when things don’t go as planned. For these situations professionals must have protection. Claimants can often be rewarded quite large amounts for damages. Without some sort of professional Indemnity Insurance to help with this many businesses could potentially face bankruptcy.
Another reason a business should have Professional Indemnity Insurance is that with a claim made against them, legal services will be necessary. Fees for these services can be quite overwhelming for some cases. Sometimes the legal expenses are needed for only defending the case in court that for also work done in order to keep the case are going to court and the first place. Professional Indemnity Insurance would cover these expenses for businesses.
Professional Indemnity Insurance would cover situations where a professional has given some sort of advice to a client. As a result of following this device some sort of loss could occur. For instance it could be a loss of money or a loss of clientele. If the client then decides to make a claim against the business, a professional Indemnity Insurance policy would kick in. Also another situation that can be covered with professional Indemnity Insurance is when intellectual property has been stolen. A business would also be covered in this situation.