Why You Need Professional Indemnity Insurance

Why You Need Professional Indemnity Insurance


Businesses consider so many insurance products in their dealings with insurers, but few ask about professional indemnity insurance (PII).  It can cover financial losses incurred by clients owing to death, bodily injury, malfeasance, and omission.

What Does Professional Indemnity Insurance Cover?

Professional Indemnity Insurance policies provide cover to professionals and companies. Professional Indemnity Insurance covers you if a client alleges that you have made an error in your professional services or that you have provided a courtesy that has caused them financial loss. It also covers any compensation they seek from you, as well as the cost of defending such allegations.

Many different professions require Professional Indemnity Insurance, including; IT Professionals, Accountants/Bookkeepers, Engineers, Architects, Financial Planners/Advisers/Brokers, Insurance Brokers, Real Estate Agents/Property Managers, Fitness Instructors/Health Professionals, Mortgage Brokers, etc.

Reasons Why You Need Professional Indemnity Insurance

Professional indemnity insurance provides cover if your business is held liable for loss, damage or injury caused by the advice you offer or services that you perform. Here are five reasons why you need Professional Indemnity Insurance:

● The cost involved in defending even a frivolous claim can be significant and will take time away from your core business activities.

● Professional Indemnity Insurance can be tailored to suit the specific needs of your business and ensure that you have the right level of protection for your industry.

● Many clients and customers require insurance documentation as a condition of doing business with you. If you don't have professional indemnity insurance, you may miss out on opportunities to grow your business.

● If you make a mistake, professional indemnity insurance can provide cover for compensation payable to your client as well as their legal costs and any legal costs incurred in defending an allegation of negligence.

● A Professional Indemnity policy can also include cover for defamation, breach of copyright, loss of documents, dishonesty of employees, and contractual liability.

If you're running a business, then Professional Indemnity Insurance is something you need. It would help if you took out this insurance to help protect your business in the best possible way. Get Professional Indemnity Insurance from ACE Insurance today. Visit the ACE Insurance website for more information. 

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