Attempting to understand what types of business insurances are available, not to mention which ones are advisable for your business, can be a complicated, especially for fledgling start-ups without any real experience.
One of the business insurance types that doesn’t necessarily apply to everyone, but can be a lifesaver to those who need it, is the Hiscox professional indemnity insurance . However, there’s little need investing in the policy if you’re not going to benefit from it; here are the answers to some all-important questions to help you make the right decision.
What is Professional Indemnity insurance?
It’s a form of liability insurance that protects businesses who offer professional advice and expert services from compensation claims that arise due to poor advice or negligence.
Who should take out the cover?
It is a legal requirement for accountants and financial advisors to take out PI insurance. It’s also recommended for tradesmen to invest in the policy because, without it, they may not be able to join the relative associations.
Other professions that could benefit are solicitors, architects, construction workers, maintenance workers and those involved in transport.
If you believe your business provides a professional service or advice to customers, head online to get a professional indemnity insurance quote. It can save you hassle and money if you’re ever faced with a compensation claim.
How does it help?
If a customer believes that they have suffered a loss of any description because of the service or advice that you have provided, they could have grounds for a compensation claim, in order to recoup their financial losses from your business.
A PI policy will not only cover these damages, but will also cover any legal expenses incurred if the case goes to court.
Is it a legal requirement?
Not in all cases, no. Accountants and tax advisors have to take out a policy to function and in many professions, you’d be expected to take out the cover before you operate. Even if it’s not a legal requirement for your profession, many clients will expect you to be suitably covered and, if not, you could lose the contract to someone who is.
Ask for help or research online to gain a full understanding of this cover, and the other available business insurance policies, to ensure your business is protected as much as it needs to be.