Just as not all businesses are made the same, neither are all policies. When it comes to business insurance, a valuable coverage for a lot of companies is Professional Indemnity Insurance. General Liability Insurance only covers personal injury or property damage, but Professional Indemnity insurance is weighted in business finance and non-tangible loss.
While it isn’t a legal requirement in the UK, is it mandatory (and regulated) in some fields. Solicitors; financial advisors; accountants and healthcare professionals are all subject to these regulations, and can be fined if they don’t have sufficient indemnity cover. At Mercia Insurance Brokers, we can source specialised policies in professional indemnity, so that whatever your business, you’re protected from third party claims. Businesses that create or handle intellectual property may also benefit from Professional Indemnity insurance, so that they are protected should their services negatively impact the finances of their clients. Professional Indemnity insurance is popular among IT Consultants; Designers; and Tutors for this reason.
Professional Indemnity Insurance is necessary for advice and service-providing companies, or ones that handle (particularly sensitive) client data. Professional indemnity protects you from a financial hit by covering the cost of claims made against you for financial loss incurred by a customer due to your advice or service. Whether you have been proven to have acted negligently or not, the cost of claims to clear your business’s reputation can still be incredibly pricey. Errors and omissions while working with your clients also present opportunity for liability, so it’s important that your policy covers you adequately. Professional Indemnity insurance is notoriously confusing, and deciphering the small print is the job of a broker or legal professional. Thankfully at Mercia Insurance, we can take the leg-work out of finding you a policy to encompass all your eventualities, protecting your business in the long-term.
Professional Indemnity cover is usually written on a ‘Claims Made’ basis,which means that the cover has to be in place at the time the claim is made – not when the incident occurred. Professional Indemnity is just as valuable when extended for a period after the closure of a business as throughout a business’s working life, to cover any claims made after the business has closed for services or advice issued while the business was practicing.
If you’d like to hear more about Professional Indemnity insurance, learn about what can and can’t be covered or exempt, and have tailored policies developed for you by a leading insurance specialist, speak to us at Mercia Insurance Brokers.