When seeking coverage, you may come across technical terms such as "compensation," "duty of care," "claims," and "negligence." But what if those terms mean nothing to you at all? Let's start with the basics. What exactly is professional indemnity insurance?
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It's about neglect and protection. Simply put, in your business, your negligence can be seen as a mistake you made. Mistakes usually have some kind of damage (say an unhappy customer) and here's a little protection for you.
If, as a professional, your customer believes you made a mistake, eg. For example, if he has given you bad advice, failed to deliver what you promised, or if he was negligent with his confidential information, he could sue you for damages he suffered as a result of the alleged failure.
When they decide to file a claim, professional indemnity insurance begins. The legal fees for your protection and any damage provided to your customers are paid – up to the level of coverage your policy offers, of course. You solve problems and with any luck, you can retain your customers.
An important point is to take out professional liability insurance for obvious mistakes. Insurers tend to draw the line when paying claims that stem from carelessness or promises of something you can't deliver. You still need to act responsibly.
Even though you have your own terms, we advise you to get professional indemnity insurance. Today's customers tend to judge first and ask questions later – in fact, you can't go wrong to find yourself at your keen, enthusiastic fingertips.