Easy access to ‘no win no fee’ legal services which help individuals claim compensation have increased the likelihood of a business experiencing a claim in this area. If your business involves providing clients with expert advice that they are likely to base important decisions on, you could be next.
If something goes wrong and a client experiences a loss because of an error of judgement or mistake on your part, they may seek compensation and take legal action against you.
Without Professional Indemnity Insurance, a claim for damages on the basis of professional negligence is likely to incur significant costs, which may be high enough to put you out of business and put your personal assets at risk too. Even if you’re not ultimately found to be liable, the costs of defending yourself in Court can add up quickly.
What Is Professional Indemnity Insurance?
Professional Indemnity Insurance is insurance cover that is designed to protect professionals against legal costs and claims for damages to third parties, which may arise out of an act, omission or breach of professional duty.
Which Consultants Need Professional Indemnity Insurance?
No matter how experienced you are, you’re still only human, which means you may make a mistake. That’s why Professional Indemnity Insurance is vital for consultants, no matter what their area of speciality, such as:
- Business Analysts
- Compliance
- Data Analysis
- Employment & HR
- Management Training
- Company Development & Planning
- Fire Safety
- Marketing & Advertising
With appropriate Professional Indemnity Insurance, you will be much better prepared to cover the costs should a claim arise.
The Rising Threat of Claims and Litigation
The threat of potential claims and litigation is very real in today’s business environment. Many business owners fall into the trap of thinking it will never happen to them, but small or large, no business is immune.
Unfortunately, legal action often comes as a result of an unforseen event. Without Professional Indemnity Insurance, the business owner may be tempted to settle the case as quickly as possible in order to save costs. This however can be seen as can be considered an admission of guilt, which may have a devastating effect on your reputation in the long term.
Professional Indemnity Insurance gives you the opportunity to pursue the legal avenues necessary in clearing your name and defending your reputation.
Speak to your insurance broker for more information on Professional Indemnity Insurance for your business.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
