Professional Indemnity Insurance Safeguards Your Personal Assets

By Author: Donna Stewart
Total Articles: 103
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We live in a world that expects perfection from us no matter what form of employment we are in. One slip-up and there is someone to pull us up and question us. This is where the importance of Professional Indemnity insurance is realized.

Professional Indemnity (PI) insurance is a cover that protects professionals like doctors, consultants, lawyers, architects, bankers, engineers, and designers, among others, from claims made by clients when they suffer a personal or monetary loss. Finance professionals will benefit enormously with this insurance, especially considering the number of banks facing problems after the sub-prime crisis.

Need for Professional Indemnity Insurance

* If your job exposes you to a potential and reasonably sizeable risk of being sued, you should consider taking liability insurance.

* The growing size of companies entails large groups of people working on single projects at different levels and phases. When there is an error in the functioning, it is difficult to fix the blame solely on one person. The company head cannot be held responsible for the mistakes of his or her employees. ...
... If this is done, he would be bankrupt in no time. A sensible thing to do would be to take Professional Indemnity insurance to protect his or her assets.

* In the competitive cut-throat world of business, there will always be some people who will try to pull you down. You must arm yourself with financial and legal safeguards to counter such situations.

Types of Cover

You can be protected from a host of unfortunate events with indemnity insurance:

* Slander, libel, and defamation suits

* Accidental errors at the workplace

* Breach of confidentiality

* Copyright infringement

* Any other form of professional misconduct or negligence

Extent of Coverage

When you decide to take a PI Insurance, you will be asked information like the type of business you own, the annual turnover, and the number of employees working on the rolls. The extent of coverage you require will depend on the risk level your job exposes you to. As it is a cover against the future unknown losses, it is at best a calculated estimate. The riskier your job, the higher should be the amount of your cover.

You can tailor the policy to include some or all of the following covers. The premium will vary accordingly:

* Directors', Employers', and Public Liability insurance

* Office Equipment Insurance

* Holiday Insurance

* Manual and Offshore Insurance

* Accident and Sickness Insurance

* Business Interruption Insurance

* Health and Safety Insurance

There is no certainty about life today. Therefore, it is important to protect your interests as prudently as possible. Professional Indemnity insurance will ensure that if you give your client wrong advice or through some miscommunication or misinterpretation your customer faces a loss, you will be covered.

Caunce O'Hara Insurance has a team of experts and award-winning insurance brokers who offer Professional Indemnity insurance to corporate clients with a turnover of GBP 1 million to over GBP 300 million. They also offer a range of insurance services to businesses, freelance professionals, and high net worth individuals.