Professional indemnity insurance is a policy that is becoming popular, thanks to the awareness amongst professionals and businesses. Professionals include accountants, architects, engineers, solicitors and those in the IT industry, as well as other industries.
Every business, be it big or small, has its share of risks and twists. At times, professionals running the business operations may land in embarrassing situations that could result in financial losses for the company. Hence, a form of insurance is required that offers enough protection to the professional to do his best in order to provide the best services to his client, and the business at large.
Even a single wrong decision on the part of the professional could lead to problems. For individuals who are on their own, or for freelancers, this form of insurance is an absolute necessity as it protects them from many a hassle in the future. It protects the insured from acts of breach of confidentiality, trademark problems, and so on.
Many a time large organisations, especially public sector bodies, deal with companies only if they have the requisite PII cover. This form of insurance provides coverage for loss and damage arising out of negligence in your work. If there has been a mistake in the building design and the building collapses, then your client has every reason to sue you for negligent acts (like wrong design) and claim compensation.
Errors on the part of accounts executives in filing a tax form after the due date is another example of negligence, which can prove to be costly for the client as he could drag you to the court. This is infringement or violation of professional duty.
Professional Indemnity Insurance provides coverage only for specific circumstances caused due to carelessness. You cannot claim compensation for personal injury expenses or work related illnesses. Check with your insurance provider about the coverage and information on other policies.
The insurance premium is calculated on the basis of the projects your company is handling and the clients you are working with. The type of job handled by your company also affects the premium amount. If your company is into designing shopping malls, then the premium charged would be higher as compared to a business that is into designing residential houses. A firm that has a good market standing and repute would have to shell out a smaller premium amount as compared to a firm that places claims quite often.
There are many insurance providers offering professional indemnity insurance and a host of other services. This insurance has become rigid and mandatory for people in the professional field like accountants, solicitors and architects. Other professions that call for the purchase of professional indemnity insurance include people in the designing field, advertising field, engineering and real estate. It eases tension and creates a stress-free working atmosphere. The burden and the stress are passed on to the insurance company and we do not have to worry any further.
For more information about Professional Indemntiy Insurance visit Flint Insurance.