While offering professional services, mistakes can happen as frequently as they do in personal life. Although you can deal with a casual mistake in life easily, it is not the same in case of professional errors or negligence. If you are a doctor, lawyer, architect, or a chartered accountant, you would agree that you need to often deal with complicated decisions. Your decisions have the potential to either resolve a client’s situation or cause a loss.
Losses often provoke people to seek compensation, and professionals face charges and lawsuits which may damage their reputation and financial health.
Lawsuits or litigations can come up in almost any profession where you offer services or advice as a part of your business. Hence it is imperative for you to buy professional indemnity insurance cover to safeguard your business from facing losses related to such litigations.
How Does Professional Indemnity Insurance Help?
This is a type of business insurance meant for organizations and professionals in diverse industries who provide services or consultation to their clients. Also known as professional liability insurance, it covers claims made by the business owners when their clients have filed a lawsuit against them for causing significant financial losses due to their services. The compensation demanded by the clients can be large and varies from one profession to another. This is where this insurance policy can help.
What All Does It Cover?
A professional indemnity insurance policy covers all legal liabilities that arise against your business out of negligence or errors while rendering your services. It includes compensation asked by the victims as per lawsuits filed, as well as the expenses incurred for defence, including court fees and lawyer fees.
Things to Consider While Buying Personal Liability Insurance
- Know What the Policy Includes and Excludes
No matter which insurer you choose to buy professional liability insurance, such insurance has specific exclusion clauses mentioned along with its benefits. It is crucial that you ask your insurer to explain the exclusions in the policy to you before you buy it. Doing this will save you stress and problems of finding about them after a lawsuit has been filed against you.
- Research Well About The Diverse Types Of Policies Available
There are many insurers in the Indian market, each one offering a wide range of liability policies. It often happens that people get confused while searching for the most suitable insurance policy to cover their businesses. If you feel the same, it would be best to research thoroughly about different policies, read the wordings, and ask for clarification from the respective insurers. Also, you can ask for help from an insurance broker like SecureNow to help you to compare policies from several different insurers.
- Review Your Insurance Coverage Regularly
As your business evolves, so should your professional indemnity insurance policy. For instance, you may start offering several professional services to get business growth. For all these changes, it is essential to check if your liability insurance policy provides adequate coverage. So, review your policy regularly against any newer or higher risks related to the newer services you offer and ask for higher coverage from your insurer if needed.
The Bottom Line
Professional liability insurance protects your business and helps you save your reputation amongst clients. Make sure you buy this policy and avoid facing financial losses related to the possible lawsuits. Be wise and be safe!