Explaining What Professional Indemnity Insurance Is
Many of us dream about having our own business someday. Though the road is long and many sacrifices are required, there are people who persevere and eventually succeed. However, the initial joy of being a business owner can be easily superseded by the quick realization that running a business is a rather challenging process.
Aside from a well-developed business plan and a professional www.businessshed.ca, you will need to take extra measures in order to protect your business. Whether you plan to make a profit as a financial consultant, web designer, architect, marketer or doctor, it is important to have professional indemnity insurance.
Many people find this concept strange and so, they wonder – what is professional indemnity insurance? By and large, a professional indemnity is designed to protect your business from serious losses caused by complaints made by unsatisfied clients. Though it is desirable that all things run smooth, there will be cases when you will have to deal with customers who feel that the quality of your services has caused them damage.
Some of the most common reasons for complaint are professional neglect, loss of important documents as well as breaking the confidentiality policy. With the help of professional indemnity insurance you will ensure that you are protected and not bankrupted by any legal action caused by your actions.
When making a professional indemnity insurance it is essential to close a contract with an insurance company that works with solicitors who understand the requirements of your industry. For instance, professionals that work in the medical industry will need to close a malpractice insurance whereas lawyers, consultants as well as brokers have to sign an “errors and omissions” insurance.
Also, do not forget to ask the insurance company to specify exactly what the policy covers. Normally, professional indemnity insurance is set to cover the legal costs arising from the customer that filed a lawsuit against you. However, there are insurance companies that offer policies which also cover any potential compensation in the event of losing the lawsuit.