If you are alleged to have provided inadequate advice, services or designs to a client, professional indemnity insurance provides cover for the legal costs and expenses in defending the claim, as well as compensation payable to your client to rectify the mistake.
What is Professional Indemnity Insurance?
Professional indemnity insurance can also be called professional liability insurance to some insurers. This type of insurance covers any advice you give a client in your professional capacity and protects you should a client believe you have failed to produce work to a professional standard. For example, a customer might claim there is a fault with a service you delivered leading to a negligence claim. This type of insurance will cover any legal fees and compensation expenses, therefore any business that provides a professional service we would strongly recommend this option.
Regardless of how many years’ experience your firm may have, there is always the possibility you (or one of your team) could make a mistake. Professional indemnity insurance covers against a wide range of scenarios, including:
- Professional negligence (i.e. making a mistake in a piece of work for a client)
- Loss of documents or data
- Unintentional breach of copyright and/or confidentiality
- Defamation and libel
- Loss of goods or money (your own or for which you are responsible
If you provide advice, designs or a service to your clients, you should give serious consideration to professional indemnity insurance.
While most firms enjoy good relationships with their clients, a mistake in a project can change working dynamics overnight. The chances are that if a client suffers a significant financial loss as a result of your negligence, they are likely to seek recompense.
Get in touch today…
Many businesses have unique requirements therefore it is critical we understand all your options. Davies Craddock Insurance have many years’ experience in this field, with access to a wide range of insurers, we can offer a competitive and flexible range of insurance policies that will be unique to you.
Get in touch today for more information