Professional Indemnity – what does this all mean?

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Direct those burning questions about all things Professional Indemnity insurance to our team at OMNISURE!  We explain in plain English all the Professional Indemnity jargon assisting our clients in understanding what they are actually buying. We explain the covers, exclusions, and how the policy responds in the event of a claim.

Professional Indemnity Insurance explained in plain English

What does Professional Indemnity cover?

Professional Indemnity Insurance protects professionals against claims of negligence or breach of duty made by a client, as a result of receiving professional advice or services from your business.

If you’re getting paid for your professional advice or opinion, then you need to make sure you are covering yourself! Professional Indemnity cover is important for:

  • Anyone who provides professional advice or services to a business or individual.
  • Contractors looking to work for the government. Many organisations are required to have cover to be awarded a contract.
  • Profession Specific Professional Indemnity – e.g. IT Contractors, Management Consultants, Accountants, Estate Agents, Medical Professions etc.

If someone alleges that you’ve overlooked a critical piece of information, made a mistake, misstated a fact, or misinterpreted you in the course of your work, and this results in a financial loss for your client, then they may take legal action against you to recover these losses.

Just imagine your legal fees, judgements, or settlements, as well as the time away from your business and the potential impact on your business’ reputation – all things which Professional Indemnity insurance can provide protection for. You work so hard building your business – Professional Indemnity insurance is an investment in keeping your professional business around for the long haul!

Allegations do not necessarily have to be true, Professional Indemnity Insurance seeks to protect your assets, your reputation, and the contents of your back pocket should this occur. This means you can continue in your business without the stress of financial or reputational ruin should a claim arise.

There is always the risk of an unhappy or disgruntled client making a claim against you, and this isn’t always determined by your skill or level of professionalism. This is something nobody can control, however we at OMNISURE are here to make sure you have some control over what happens next.

I cannot imagine that any Insured may think going to court to defend a claim might be in the ‘too hard basket, but considering not going could be viewed as an admission of guilt, think about the repercussions on your reputation!

If you’re making your debut in front of the judge, make sure it’s not costing you a fortune! Without Professional Indemnity insurance, you will be personally liable for these costs!

Professional Indemnity Insurance is there to help the insurer’s panel of solicitors take care of legal proceedings and defence!

What could result in a Professional Indemnity claim?

Claims can still happen regardless of whether you take all the necessary care to ensure you provide your professional services and advice in the most responsible manner. That’s where Professional Indemnity comes into its own – providing peace of mind and the protection your business deserves.

Below are a few examples of the types of claims that could arise:

  • Failure to provide professional services
  • Make mistakes or oversights
  • Misstated a fact
  • Overlooked a critical piece of information
  • Being negligent in rendering its professional services
  • Providing shoddy, incomplete, or incorrect work
  • Accidental omissions
  • Loss of documentation
  • A miscalculation
  • Incorrect diagnosis or treatment
  • An act, omission, or breach of duty
  • Inadvertently defaming someone
  • Failing to meet deadlines
  • Failed to meet clients expectations, etc.

I always say that no two Professional Indemnity policies are the same! Get the experts at OMNISURE in your corner to create a tailor made Professional Indemnity policy for your business!