A large number of people that start businesses, in Australia have been experiencing a steady growth in business for the past few years. One area that is growing in magnitude is the idea of starting a consultancy business which offers an individual’s expertise to people who need it.
However, there is a comes a risk with offering advice as a consultant. An angry client who has suffered a financial loss based on your advice may turn around and file an insurance claim against you. The result is that you could have to pay, these past clients who you attempted to help in good faith, a large sum of money for their damages. This may seem unfair, but the fact remains that you are at risk.One way to ensure that this never happens to you, is by purchasing something called Professional Indemnity Insurance, this is a very safe option to assure you are covered in the event that someone files suit against you. Professional Indemnity Insurance works by insuring you the cost of a claim made that is equal to your client’s monetary loss and will cover the cost of your legal fees.
This can really help to offer a consultant like yourself, the peace of mind for both the you and your client. It will make a client much more reassured and happier knowing that if any of your advice causes them a loss of finances that they will be reimbursed by your insurance company. It will also help you of course, in the way that you can breathe easier knowing your Professional Indemnity Insurance will take care of any disappointments of misjudgements on your part. Your insurance company will be responsible for paying your past client the amount they lost and cover your time and expenses that you may have had to put out initially.
This type of insurance is usually offered as a part of a business’s insurance policy. The cover will form the center of your insurance coverage and you will usually be able to add additional coverage if you think that you may need it in the future or at any time during your Professional Indemnity Insurance policy’s term. As an example, at some point you may want to add business insurance or public liability insurance for your own protection.
When you buy a Professional Indemnity insurance policy, it usually is a good idea to look around until you find the deal that suits your needs best. One way to do this is to compare quotes from different companies offering Professional Indemnity Insurance. This way you are able to get the full spectrum of what competitors charge but looking at a side by side comparison of them and their rates. This will save you time and money, and probably give you the best coverage in the long run because you would have had an opportunity to compare not only rates but also policy wording.