Professional indemnity insurance is something that may be worth considering. You may also hear it called PI insurance or even PII.
If you run a business, you may think that nothing will ever go wrong – for example, you will never be sued or accused of negligence. However, some things are beyond our control and things may sometimes go wrong.
PI insurance typically provides your business with protection in respect of any legal liability which arises out of the exercise and conduct of the business. Having that peace of mind can leave you free to concentrate on running your business.
With some professions, PI insurance can be legal requirement of some trade bodies. Whether it is obligatory or not to your business, it is important that you choose the right PII policy with which to protect your company.
Levels of protection
There are different types of professional indemnity insurance – some may specifically be tailored to meet the needs of your particular industry – and, often, different levels of cover too. These can help protect you and your business against the financial fallout of a claim.
Consider this – would your business survive if it was faced with a claim of negligence against it? One claim could cost you a substantial financial sum and, in the worse case, even bring your company to its knees. But having the financial protection of this insurance in place may help stop this.
A professional indemnity insurance policy may help take away the stress that a lawsuit against you would cause and provide financial assistance with legal and compensation costs.
The cost of cover
You may feel that PII is an expensive, unnecessary overhead. However, it may be worth seriously considering professional indemnity insurance as it need not cost a lot – unless it is a legal requirement of the trade you are in, in which case, shopping around for the most suitable deal regularly may be an option.
If you are considering this insurance, then you need to ensure that you buy it from the right place. Specialist providers of professional indemnity insurance often can offer tailor made policy options so that you to get the protection required.
