Professional Indemnity Insurance is also known as PI. This can provide protection for you against claims made by customers. This type of policy can protect you from these losses therefore reducing the risk to your business. You may wish to consider this policy if your business works with advising clients.
If your work causes either loss or damage to a customer. They may seek compensation. For example:
- If you were to cause an injury to a customer.
- There was damage to their property, from work you carried out. Therefore they needed to seek out repairs.
- If you shared information that was related to a customer. If this took place without their permission.
- Maybe you provided the wrong advice or info to a customer. Subsequently leading to a loss.
- Or you gave negative comments about the customers reputation.
You may not require this policy. However, it may be something you may wish to consider. Due to the protection it can offer, you may consider this policy if you work for a company that offers knowledge, skills or advice. In jobs such as accounting, solicitor or engineering. You are more likely to see the benefit of this policy.
In certain jobs you may be required to have this policy. For instance if you want to be part of the professional body. In addition your work may require you to have this type of insurance. For example if you are a:
- Financial Advisor
- Construction Worker
- Coach / Trainer
If you choose to take out this type of policy, it only covers you for the time that you are insured. In other words you cannot use it for previous claims before the insurance started. Things you should consider when looking at a policy are:
- The type of business you are. To make sure you are only paying for the areas your really need.
- The amount of cover you need. Take into consideration how much cover you may need. However the higher amount of cover you need, the more expensive the policy may be.
- How much excess you require. In other words ensuring your able to cover cover the excess. Also whether it’s worth making the claim in the first place.
- Past Satisfaction. Whether the payout rate is good in past cases. In other words have other customers received their money quickly. Thus getting the finance they need.