Professional indemnity insurance is handcrafted to provide coverage for claims brought against the policy holder due to professional carelessness or accusations. Sometimes, the claim can be based on the policy holder’s client bringing a claim against them due to bad advice, information which has led to financial loss. This is why many people turn to a concept like professional indemnity insurance, which can cover and protect both parties where they need the coverage and protection most: Their bank account.
In life, mistakes happen just as frequently as they do in business. Mistakes can be in sales, finance, marketing, or services rendered. Many of these mistakes can often prove costly to a business if precautions aren’t taken. Claims can and do occur and can be a possible set back for new businesses just trying to get started, and also be a major inconvenience for those already well established. A large lawsuit, can ruin a business, cost tens of thousands of dollars, and potentially have the ability to ruin lives of those involved on the short end of the stick.
A major aspect that any potential policy holder needs to consider when deciding upon whether or not they should buy professional indemnity insurance is the potential financial loss that can occur as a result of legal fees whether or not you win your case.