Professional Indemnity Insurance Explained
As a new business owner, it’s unlikely that you’ll have heard of professional indemnity insurance. It is, however, a very simple concept, and a very worthwhile insurance for you to consider.
Whether you are a sole-trader or a small business owner, if you provide a service or advice then there’s little room for error. This is because, should you make a mistake in your work or any advice given, your client could have grounds to make a claim for compensation against you, which could be potentially devastating to your business.
In the current economic climate, you want to give your business the best possible chance of survival, so taking unnecessary risks should be out of the question.
Hiscox professional indemnity insurance policies can be tailored to suit your specific business, whether you’re a marketing consultant, IT consultant, artist, designer or something else.
Flexible professional indemnity policies allow you to choose your required cover, meaning that you get the best possible value for your investment.
Once you’ve put this protection in place, you can then conduct your business with confidence, and without fear that one small mistake or misdemeanour could de-rail your enterprise.
Not only can client disputes ruin your business in financial terms, they can also damage your reputation irreparable. In fact, although professional liability insurance isn’t compulsory for many types of business, many companies, clients and individuals will insist upon it before they will work with a third party such as yourself.
Having the correct professional insurances in place shows that you know your industry well and take your responsibilities seriously. It gives any potential clients peace of mind that they can put their trust in you. Should the worst come to the worst, they also have the peace of mind that they are covered for financial loss through your insurance policy.