A suitable insurance policy that will cover you or your company should you face accusations like negligence or professional neglect is an essential addition to your arsenal, whether you’re an architect, a plumber or a software developer. Ultimately, any profession that provides services on which the financial gain of another person rests should consider getting professional indemnity insurance. However, many of us would be rightly cautious about adding a potentially costly insurance policy to our personal or the company’s balance-sheet – so let’s assess some concrete benefits to professional indemnity insurance.

Professional Indemnity Insurance

The most obvious practical benefit is that in the eventuality that you lose whatever case is being brought against you or your company, with the right professional indemnity policy all compensation and legal costs can be covered by your insurer, meaning that repairing your professional image does not have to go hand in hand with repairing a massive hole in your finances. Large companies who take out corporate insurance cover themselves from any potential cases brought against them.

However, it is not always the case that the concerned parties wish to bring a case to court, and a highly valuable benefit of professional indemnity insurance is that it can provide financial support in the negotiation of a settlement, should that be the conclusion.

The above, obviously, covers your side of the case should you be found guilty – but what if you are entirely innocent of the charges but cannot afford the legal backing to properly make your defence, and are thus forced to settle; or worse, lose in court? This is the nightmare scenario faced by businesses who simply don’t have the resources to fight costly legal battles, and one that professional indemnity insurance can help them avoid, but providing the means for them to access the best available legal help.

The reality of the world we live in today is that litigation is increasingly used by claimants as a route to potentially undeserved income, but with professional indemnity insurance, you can ensure you’re not the one who has to pay.

Helpful link:

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074302046&type=RESOURCES

This entry was posted on Friday, July 27th, 2012 at 3:19 pm and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.