Are you thinking of buying a Professional Indemnity Insurance but unclear about how it works to protect your business? This Professional Indemnity Insurance guide will help you understand how to benefit from it.
Professional Indemnity Insurance safeguards your business against financial difficulties and reputation harming claims by dissatisfied clients. Whether you are a freelancer or a small business owner, a dissatisfied customer can cause a huge damage to your reputation. Even the most respectable and renowned companies are found settling disputes with clients over a mistake. Here are few risk areas that your business could be exposed to:
Intellectual property: inadvertently infringing on others' trademarks, copyrights, any act of passing off or broadcasting rights
Loss of documents or data: lost or stolen data, damaged documents belonging to your clients
Dishonesty: liability resulting from the theft of your customer's money
Being a small business owner you would want to secure yourself against all such risks and possibilities that can arise. Professional Indemnity Insurance would cover you in case you have made a mistake in providing professional services that has resulted in a dispute with a client. This insurance would help you in defending the claim in case the dispute gets nasty and complicated. Your Professional Indemnity Insurance will cover you for any kind of damages even if you lose the case depending on the level of insurance cover you choose.
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The Professional Indemnity Insurance will also cover for the price of fixing any fault at your part, therefore preventing a bigger claim being made.
Your insurance may also protect you if you damage or lose any of the client's document or data or if any of your employee is involved in the robbery of client's money.
There are several benefits that you can enjoy with this insurance cover. Having this insurance will keep you on the safer side and will help you defend any claim filed against you by your unsatisfied customer.
Ofcourse every business has its own needs and therefore in order to understand what level of Professional Indemnity Insurance you must buy you should first analyse your business requirements. You are the best judge of the exposure that your business faces and it is also essential to estimate how much you can afford to pay for your insurance cover. Therefore you should think carefully and choose the Professional Indemnity Insurance that will fulfil all your insurance needs completely.
Is Professional Indemnity Insurance for me?
No professional would want to be accused or dumped of doing something unscrupulous or unethical acts by a client particularly when such claims are not true. Such charges and claims can cause a great damage to a person's reputation and professional career. Professional Indemnity Insurance exists to protect you against such claims. Professional Indemnity Insurance is intended to secure you against the clients who try to damage your reputation and cripple you financially.
Both small business and professionals can buy Professional Indemnity Insurance. It will protect them and maintain their good reputation and respectability in their industry. Certain laws demand the professionals to have this type of insurance and encourage others to have it because being faced with a lawsuit is not just financially disabled but can also damage your reputation severely.
Some of the professions requiring Professional Indemnity Insurance are mortgage intermediaries, architects, financial advisers, consultants and insurance brokers. Other industries where one can benefit from a Professional Indemnity Insurance are architects, graphic designers and engineers who offer a service or product for a fee. Such insurances are very much required considering that in daily work of professionals and operations of businesses, arguments and disputes with clients cannot be avoided so it is nice thing to keep them insured and protected from all the destructive and malicious accusations.
The cost of the Professional Indemnity Insurance premium can be high specifically for professions with higher risks but its benefits completely compensate for its high premium. The insurance is determined depending upon the percentage of the total legal spending of the company.
Every profession or business has different needs, therefore it is essential to go to a trustworthy company that can provide you with sound advice and can help you in choosing your insurance policy. The insurance specialist will tell you if you really need a policy and what circumstances would be covered by it. He will give you all the basic and important information that you would be required to know before buying insurance plan. An experienced insurance professional can give opinions, client suggestions and advices on the available coverage and insurance plan. You can easily find a company or insurance specialist online. There are many companies providing such services but before you buy it with anyone you must learn about the company and check its history so that you know you are making a right deal with a right company. Research the market carefully to make wise decision.
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Are professional indemnity insurance or public liability insurance same?
The only kind of business insurance compulsory is employer's liability cover. A business needs this insurance so that its employees are protected properly. As a business owner you should also give careful consideration to other kind of insurances. All kinds of business ought to have public liability cover because it helps in protecting themselves against claims for damages by third party.
There are only few businesses and consultants who can have no interaction with any client which could potentially result to a claim. If you are working outside your house or you visit your clients or they come to your place of work, then the potential exists for causing harm to a person or his property. Public Liability Insurance is designed to protect you against such claims.
On the other hand Professional Indemnity Insurance is little bit different, though it is usually purchased in conjunction with protection against third party liability. Professional Indemnity Insurance is intended to secure you against other kinds of possible claims that are filed against your business in relation with the professional service that your business offers. This kind of insurance is needed is you offer any kind of consultant services or professional services. The Professional Indemnity Insurance is intended to secure you in a situation that the services you give are proven to be negligent.
You will be protected for the claims for losses that a client suffers as a consequence of following your services or advice that you offer. If you are a lawyer or accountant than it is essential for you to have Professional Indemnity Insurance as well as other most obvious professions that will need Professional Indemnity Insurance are architects, consultants, surveyors, designers or engineers.
All kinds of possible situations can lead to claim under professional indemnity but the things for which you will be covered are to do with breach of your duty, negligence , infringement, misrepresentation of intellectual rights of property rights of a third party. The Professional Indemnity Insurance can also secure you against any work of willful dishonesty on the part of any staff employed by you.
While PI Insurance covers you against the claims resulting from services or advice that you provide in your business, Public Liability Insurance has more to do with injuries to people or damages to the property as a consequence of your business activity. Public Liability Insurance has more to do with the accidents that can occur because of the way you carry out your business.
Both these insurance types are closely related but are not the same thing. It would make good sense for majority of businesses to have enough cover of both kinds in place.
Public Liability Insurance for self employed
Are you a freelancer or self employed handling your work on your own? If yes then it is essential that you invest in an insurance plan that would suffice all your individual needs. It is vital and crucial that you have the right kind of insurance since you got to be secured against an uncalled and unexpected situations or incidents. If you are not sufficiently covered then you may lose a good amount of money or many even suffer a risk of shutting down your business.
You can get a Public Liability Insurance for self employed online. You can get free Public Liability Quotes from various insurers to assist you compare areas of cover and costs. Getting a Public Liability Insurance quote from an online website is easy. You just have to fill up an online form and the quote would be sent to your email account.
Public Liability Insurance will depend on the concept of your work. Each insurance plan is different from the other. Therefore you are needed to analyse your work and explain it to the insurer so that he can suggest the right package for you. For instance, if you a marketing consultant, you position needs a maximum amount of reliability. Your client would trust you for the business advice, solutions, strategies you would give them to help them develop their business. Since your job calls for providing a service and offering advice you need right liability insurance, Public Liability Insurance will have to be combined with Professional Indemnity Insurance for self employed.
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Similarly, Public Liability Insurance for self employee's people will differ as per their profession. Thus it is essential that your job is explained explicitly to the insurer ensuring that your business is protected properly. Depending on the kind of work you may sometime need several kinds of policies combined together. Finding the right kind of insurance policy for self employed people can be stressful and difficult exercise. You may need to do some extra negotiating so as to get a reasonable quote.
Employers Liability Insurance: This is needed if you have employees working for you.
Public Liability Insurance: It offers protection for claims made against you by third parties or members of the clients, customers, public.
Commercial Van Insurance: If you are using a vehicle for your work.
Business Buildings and Contents Insurance: It is required if you rent/own a site; or work from your own home, or you will need some insurance that covers the building and business associated items that the building contains.
Profession Indemnity Insurance: This type of insurance provides you protection against damage claims for the service and advice you give to the public that can turn out to be wrong and lead to damage of reputation of the involved person.
There are many other kinds of insurance available, so choose your insurance wisely.
Information required getting a Public Liability Insurance quote
A liability insurance quote will help in determining the cost of insurance coverage for your business. The major information required to get an offline or online quote are business category or type, details about business activities and number of employees.
You would require all these information to get a Public Liability Insurance quote:
Usually, for a Public Liability Insurance quote, you will need to:
1. Specify business type.
2. The second most important thing you need to indicate is the kind of business incorporation like (sole proprietorship, limited company, partnership, etc).
3. Specify an approximation of the annual turnover of your business. The annual turnover implies to the total sum of the receivables against services or goods sold.
4. Also it is important for a Public Liability Insurance quote to give information about any previous claims. Also information about any situations that have resulted into a claim filed against you is compulsory. In case of previous claims, you will have to provide the circumstances, details as well as amounts.
5. You will have to specify whether you work in an industrial zone or commercial sector apart from your shop or office.
6. Specify whether there are any subsidiary companies that need to be included.
7. You are needed to choose product liability or Public Liability Insurance on your application. Product liability insurance is coverage in case your business products cause damage to your client. Public Liability Insurance secures you if a third party suffers damage on your work area.
8. Specify the maximum number of workers to your insurer so that he can calculate the premium rate. The number of partners/directors, clerical employees and number of clerical partners, all are required to be specified.
9. Any previous claims or incidents in the past which may result in a claim being filed are also included. Cases related to occupational diseases or conditions like (asbestos, lung cancer, deafness, related diseases, dermatitis etc) are usually required. A claim helps the policyholder seek settlement as per the terms of the policy.
10. The date from which the coverage started is required to be provided for a Public Liability Insurance quote. One month period is provided by most insurance companies for a quote.
If you are filling an online quote, you will generally not be able to get any confirmation instantly to your email account. You are not obligated to anything by submitting the complete quote application. The quoted premium may be higher or lower than the rough estimate given to you if you decide to take it further.