Depending on your line of work you may be inclined to take out professional indemnity insurance, often small businesses that give specialist advice or are selling their skills to a client need to be covered against negligent claims. Professional Indemnity covers the cost of any third party claim for compensation over professional acts and will cover the legal expense attached to the claim. The majority of professional businesses take out PI insurance but sometimes depending on the role that you undertake, it may be required and often companies will only hire your services if you have PI insurance in place. Some of the professional positions in which PI insurance is expected include advisory and knowledge based roles such as accountants or lawyers and IT professionals such as designers or consultants. Often legal expenses in professional indemnity cases can be high as companies often seek to defend their professional name and their businesses integrity; generally PI claims are against the professionalism of a business and can have serious knock on effects towards the reputation of the company in question. Mistakes can be made in even the best run business, for instance an IT company may create a website or piece of software that contains bugs or faults and this could have potentially disastrous effects or costs for clients, these events need to be considered in any modern professional’s business insurance policy.If you want to know more try this professional liability insurance London website
Professional indemnity will cover several different types of claims against professional groups.
* Negligent acts or errors during the completion of the businesses duties.
* Unintentional infringement of copyright laws or intellectual rights.
* Dishonesty or unintentional slander during the completion of the contract.
* An unintentional breach of confidence with the client.
* A loss of data or documents entrusted into your care by the client.
Taking out Professional Indemnity Insurance
The first thing you should do when looking into PI insurance is to shop around for the best quotes for the level of cover you require either from an insurance broker or direct from the insurance companies. Don’t forget that often when you get cheaper quotes it often goes in hand with less cover. When looking into your own professional cover it is a sensible option to take into account what similar companies or groups to your own are doing and the cover they have available. Even if you are working in conjunction with other companies that have PI insurance, you should not presume that you are covered, so find out if it expressively covers you in any documentation that can be provided. If you are working abroad also ensure that you policy covers different countries and that the terms of the cover are the same.