Business owners need to be aware of the risks that their businesses have that fall under a professional indemnity insurance policy, especially if in the course of your business you put yourself out to be an expert in a particular field.
Being an expert covers anyone from the regular suspects – lawyers, doctors & accountants, through to other occupations that traditionally have not considered themselves to be at risk of professional indemnity claims, such as builders, plumbers and electricians
The threat of potential claims and litigation is very real in todays business environment and can bankrupt businesses, large and small.
What is it?
Professional Indemnity policies provide the business and its owners comprehensive protection against claims for financial loss, bodily/personal injury or property damage arising from an act, error or omission in the performance of your professional services or advice.
Why you need it
Often, substantial costs are incurred due to the need to investigate and/or defend an action that has been brought against an insured party, whether or not there is merit to that action. A quality cover will cover for these costs, in some circumstances to a policy sub limit, but otherwise inclusive up to the sum insured.
Generally, public and products liability policies exclude claims that come from a breach of professional duty. For example, failing to deliver an aspect of a particular professional service or the act of providing dodgy advice. This is most common when there’s a fee paid for the service or advice.
MGA understands that taking out professional indemnity policies can be confusing, that’s why we are always available to provide you with assistance and answer your questions. At MGA, we’ll source the most relevant information for you when it comes to professional indemnity insurance, then work with you to find the right policy for your particular needs.
Professionals of all types should make Professional Indemnity a consideration in their insurance kit bag.