As a strategy of saving money, most businesses try to cut their expenditure as much as possible. Thus, when it comes to business insurance, most companies only pay for the cover that the government legally requires. As a result, getting professional indemnity insurance (PI) cover is never considered since it is not a legal requirement. But if you are in a profession where you offer services or advice, getting a PI cover is essential.
Paying for the insurance fee might seem like an added expense. Yet, this investment can save you a lot of stress and financial strain if a client alleges that you offered faulty or insufficient service or advice and sues your business. The best way of securing your business is to choose a reliable insurance company like Smart Business Insurance to offer you professional indemnity insurance. Otherwise, you will be forced to use finances from your business, resulting in you not having sufficient funds to run your business.
What is Professional Indemnity Insurance?
PI is an insurance policy crafted to protect business owners, self-employed individuals, and freelancers if they are accused of offering inadequate services. The insurance cover protects companies that offer advisory services or professional services if they get sued if their clients feel that their work is not satisfactory.
Such cases are likely to occur if the business owner’s services or advice are of poor quality or might have cost the client money. The purpose of getting professional liability insurance is to safeguard the business against such claims. Since no one plans to mislead the clients, it is essential to have a chance to defend yourself, and that can be possible if you have PI insurance. The cover will give you a fighting chance and help you protect the reputation of your business.
Who Needs Professional Indemnity Insurance?
Though getting professional indemnity is not a requirement by the law, many professionals need to get this cover. In addition, there are certain professionals that their organizations require to have the PI cover. Therefore, if you work in a field where your organization needs you to take the cover, you will need to comply with the regulations of your organization.
Here is a look at other professionals who need an indemnity insurance policy.
- Financial advisers
- Plastic surgeons and beauticians
- Designers (Graphic designers, interior designers, and web designers)
What’s The Importance Of Professional Indemnity Insurance? 4 Benefits
Since you are not legally required to get professional indemnity insurance, you might wonder why you should add it to the list of insurance cover you are legally required to take. Though you need to add the insurance cover to your business expense, its benefits make it worth the investment. If you are still not convinced about why you should get professional indemnity cover, here is a look at what the cover will offer you or your business.
Help Restore Your Business
If your business gets sued due to omission or error, you must be present for the court proceedings. When you are dealing with legal issues, you might not have the time to run the daily operations of your business and will negatively impact the productivity of your business. Besides, you will incur huge expenses due to the court procedures and your payment fee. But if you have PI insurance, it will help you restore your business after you are done with the court proceedings.
More Opportunities to Grow Your Business
Dealing with business competition is not easy, and as a business owner, you need to strategize on ways to attract clients to your business. Getting professional indemnity insurance can help you secure tenders and projects from contractors with PI insurance as part of the tender qualification. The cover will offer you numerous opportunities to grow your business.
Get Financial Protection from Lawsuits
Some lawsuits might require you to pay a substantial amount of money, which can lead to your business straining to stay afloat. However, if you have indemnity insurance, you will get the money you can use for your defense like the lawyer’s charges, court costs, paperwork, and any other expense. The cover offers your business with financial protection needed to meet the legal, repercussions.
Peace of Mind
You can perform your profession with greater confidence when you get PI insurance. As a result, you will be productive instead of stressing about the consequences. Since you will have full attention to your project, the chances of getting great results are high. In addition, if you get blamed for financial or reputation losses, you will have peace of mind knowing that you have insurance and will not have to strain your business financially.
Get the Right Professional Indemnity Insurance Today
Despite the many reasons you should consider getting PI insurance, it is essential to get it right. Take the time to do your due diligence to ensure that you work with the best company in the industry. If you are uncertain about the best way to handle this venture, search for a reliable broker in your field to give you the best advice. You also need to ensure that you keep up with the installments so that you do not end up with issues if you get sued.