Professional indemnity insurance policies are designed for professionals who offer services or consultancy to customers. If a customer alleges that your advice, negligence, or misinterpretation resulted in their financial loss, they may take the case to court.
Regardless of the fact if the claim is true or not, professional indemnity insurance can help you protect your assets and your business.
You can continue your business operations without having to worry about covering legal costs.
No matter how professional services you offer, there will always be an unhappy client ready to take an allegation to court against you. Such claims commonly include:
- Negligence in providing services
- Services were not delivered in line with promises and guarantees
- Important aspects were overlooked
- The work was left incomplete
Here is where your professional indemnity insurance will pay your legal fees along with any settlements. While going to court is hard, holding back may also be viewed as a confession of guilt and could come with entirely devastating repercussions.
Do You Really Need Professional Indemnity Insurance?
If you are being paid for your advice or consultation, you should consider it necessary to protect yourself. This is what professional indemnity insurance is really for. Any business owner or individual providing paid services should purchase this policy.
In fact, many contractors looking to get their hands on government projects are required to have professional indemnity insurance before they can even be considered for the project.
Could This Happen To Your Business?
No matter how much experience you have under your belt or how skilled you are, at the end of the day, we are all human. It is only natural for us to make errors. When you or an employee does slip up, a professional indemnity insurance policy will help provide the right protection.
Here are a few examples of claims we have seen business owners face:
- A migration agent erroneously filed the wrong visa application for a client. For the client to remain in Australia, the agent had to file a visa application which required the client to leave the country for a while so the visa could be activated. The client made a claim against the agent and his professional indemnity policy covered the $8000 paid to the client.
- An accountant installed the wrong software for which he had no training. Consequently, his clients experienced financial loss. His policy covered the $20,000 paid to compensate the client.
At 365insurance, we understand the issues you can face when it comes to business transactions. This is why we don’t just offer professional indemnity insurance but a complete array of business insurance solutions for all your needs. Get in touch with us to learn more.