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A Guide To Professional Indemnity Insurance

Among all types of business insurances, one of the most difficult to comprehend would be professional indemnity insurance, also commonly known as PI. To learn more about this kind of insurance, read on.

The Definition

Professional indemnity insurance is one of the many business insurances that are directed at professionals who are associated with different industries where other people rely solely on their skills and expertise. Basically, you help manage a particular project, task, or duty by providing sound advice and putting your skills to use, and are held responsible for every outcome, good or bad. With the same virtue, other people can file for legal action against you if they experience damage or losses as a result of hiring your services.

One example that we can mention is the role of an accountant. This is a professional who is responsible for preparing and lodging the tax returns of a client. If an accountant fails to lodge the tax returns of the client on time, it may result in penalties on the part of the client, although it was not their fault to begin with. As such, the client may take legal action against the accountant for not being able to carry out the duties that was required of them.

The PI insurance coverage is able to protect you, the professional, from any action similar to the one mentioned above. This insurance coverage is able to cover claims that are made against you. This coverage includes legal defence costs, which are dependent on the specified amount on the policy. In addition, the excess would also have to be taken into account. Because of this, it is important for professionals who are looking to getting this policy to always check the details of the fine print, to see the specifications of the coverage.

The Challenge

Professionals do not always like it when it comes to looking into this kind of insurance coverage. The very reason for this is because the PI coverage actually makes up the largest percentage of the business insurance expenses. Plus, processing it is quite lengthy. It may even take up to twelve weeks or even months in some cases. Because of the price and the duration, many people decide not to get one, not realising that it could bail them out big time, in the future.

Thankfully, there are a lot of companies out there that take care of your needs when it comes to this kind of insurance. Looking for good policies has also never been easier with the ability to get effective quotes on the internet even with just a few clicks of a mouse. Some websites even have the option to let you compare many insurance companies that offer this coverage and even allows you to make a payment online. With this new convenience, people who are out looking for PI coverage can do so a lot quicker, and without a hassle.

For more information about Professional Indemnity Insurance visit Flint Insurance.