The world of insurance cover and quotes can be daunting to the novice businessman. He may have thought of insuring his business premises and its contents and stopped there, but depending on the nature of the business he is involved in, he could have missed a vital part of his insurance cover. Professional Indemnity Insurance (also known as PI and Public Liability Insurance) is vital to any business that provides professional services, guidance or advice to third parties. Depending on the nature of your business it can be difficult to work out if this cover is pertinent to your needs.
Do You Think You Need PI?
If you think that PI might be relevant to you, you’re probably right. Professional Indemnity Insurance is relevant to any business where the advice they give and any errors in their word could have knock on effects to a third party client. As much as businesses like to think that they operate error free, mistakes do happen and Professional Indemnity Insurance can cushion the blow of any claims for compensation. If you and your business offer any of the following to your clients then you definitely need to look into obtaining Professional Indemnity Insurance:
Does your business offer guidance or advice to clients?
Do you offer a data handling service?
Does your company provide technical services?
Is client confidentiality a major concern?
Does your company handle important documentation that is vital to your clients?
A yes to any one of these questions is a good indication that you need Professional Indemnity Insurance.
What PI Covers
Professional Indemnity Insurance covers you for any accidental mistakes, misjudgements and miscalculations that may adversely affect your clients, and should this result in them taking legal action against you PI would cover the costs of the claim against you, plus court costs if the claim against you was successful, including any other losses suffered by your business as a result. If you believe that your business needs PI you need to ensure that you obtain the correct cover as a matter of urgency to ensure the smooth running of your business.
Professional Indemnity Insurance isn’t something that should be looked into when something goes wrong. It should be a part of your business from the get go so if you haven’t already got it, look into it today.
