Professional indemnity insurance, like product liability insurance, is designed to provide insurance for claims brought against the policyholder due to their professional negligence, or due to perceived negligence. Although it’s normally inadvertent, mishaps happen frequently in the business world, whether it’s in manufacturing, sales, distribution, or, in the case of this type of insurance, services provided. In these instances, a consumer or customer can bring a law suit against a business – potentially putting that business under such financial strain that they could be forced to go out of business. Insurance is certainly a necessity for most businesses. Reputation is also a necessity in today’s business world.Click to Read more about professional indemnity insurance London UK Your Satisfaction Guaranteed
One thing for a business or a potential policy holder to consider when deciding on whether to purchase professional indemnity liability insurance or not is protection of their professional reputation. Let’s imagine for a minute that your company does everything professionally and actually completes a particular service error-free. John Doe, a disgruntled consumer, unjustly sues your company, incorrectly citing professional neglect. After months and months of painful litigation, your company wins the court battle. But at what cost? You’ve invested thousands into attorney fees, but more devastating is the inevitable hit on your company’s reputation of professionalism. This whole situation and situations such as this can all be avoided with professional indemnity liability insurance.
Let’s go back to John Doe’s allegations. Let’s assume that Joe Blow, a rookie on your company payroll, lost focus one day and actually experienced a workshop mishap, resulting in actual suffrage on the part of John Doe. John Doe files a lawsuit against your company, and this time he wins. Even though your company was clearly at fault, due to professional negligence, your company is covered through professional indemnity liability insurance, provided that your company has been protected under the appropriate umbrella of coverage.
Access to specialized legal advice is another crucial need and a wonderful benefit of professional indemnity liability insurance. Many legal terms are often tossed around in today’s business world, and immediate and reliable legal advice is definitely a plus for any company.
The repercussions of failure of a business to have liability insurance can be devastating. Lawsuits are all too often in today’s business world, and no business wants to be the recipient of one. It’s extremely critical for businesses today to cover themselves with professional indemnity insurance, particularly when the potential consequences are so critical. Protect yourself today.