Does your business need Professional Indemnity Insurance? Unlike Employer’s Liability Insurance, which is a legal requirement for all businesses operating in the UK, Professional Indemnity Insurance is voluntary – although if you work underneath regulatory bodies you may be required to arrange suitable cover in order to practice. Despite not being a legal requirement, Professional Indemnity Insurance is one of the most valuable forms of business insurance, providing financial protection should something go wrong. You should consider Professional Indemnity Insurance if…
- You give advice to clients that could impact them negatively.
- You share knowledge with clients that could prove to be incorrect.
- Your clients could suffer damages as a result of any information you share.
Professional Indemnity Insurance protects against any negligent advice, even if that advice was believed to be in the best interests of the client at the time. Solicitors, accountants, surveyors, and financial advisors are some of the most ‘at risk’ industries, although this type of business insurance is highly recommended for any business that offers advice or knowledge sharing, including marketing firms, design agencies, public relations, and consultancies.
How Professional Indemnity Insurance Can Benefit Your Business
As more and more businesses are beginning to understand the importance of Professional Indemnity Insurance, the number of claims reaching the high court is diminishing significantly. Between 2009 – 2012, for example, high court cases reduced by 74 percent as more claims were successfully being settled out of court due to adequate insurance coverage and protection. For businesses, Professional Indemnity Insurance can help retain reputation, streamline claims processes, and help settle issues efficiently, effectively, and in the most cost effective manner.
Small Businesses Overlooking Professional Indemnity Insurance
Shocking statistics suggest that new start-up companies do not arrange Professional Indemnity Insurance for an average of 6 months after beginning trading – and around 20 percent of new businesses wait up to two years before securing suitable cover. The worst offenders for delaying insurance purchases are those in the design, engineering, and marketing sectors, and many businesses within these industries are leaving themselves vulnerable and open to risk.
Finding Professional Indemnity Insurance for your Business
Whether you’re looking for Professional Indemnity Insurance or any other type of essential business insurance such as Public Liability Insurance or Employer’s Liability Insurance, the best way to find attractive premiums that meet your budget requirements is to compare business insurance deals from major UK providers. Online price comparison tools offered by compareyourbusinesscosts.com help you to locate the best cover for your business, at a price you’ll be happy with.