If you are a professional and have your own company, then it is advisable that you have professional insurance, which can also be referred to as professional indemnity insurance. Professionals are expected to possess extensive technical knowledge in their specific area of expertise. They are also required to perform their services as per standards of conduct. Therefore, the professionals can be held legally responsible if they fail to use the degree of skill, which is expected from them.
Purpose of Professional Indemnity Insurance
The primary purpose of professional insurance is to protect the professionals against any financial losses from lawsuits, which can be filed against them by their clients. It is advisable that you have general business insurance in order to protect you from financial losses caused by property damage or bodily injury. In addition to this, you should have professional indemnity insurance that provides coverage against lawsuits filed because of misrepresentation, negligence, inaccurate advice and/or violation of fair dealing and good faith. Therefore, if you are a professional, then you should have adequate professional indemnity insurance coverage against financial losses caused by lawsuits.
How to choose professional insurance providers
You should consider the following when choosing a professional insurance provider.
• Check whether or not the insurance provider has enough experience.
• Verify whether or not the insurance company can provide adequate professional insurance that is required for your business.
• Make sure that your insurance provider can help you accomplish your long term business plans; the insurance company should be able to provide adequate policies as you expand your business