As much as you try to provide quality services for clients and work efficiently with business partners, the threat of legal action due to professional negligence is a concern for most businesses.
Legal issues arise as a consequence of mistakes being made, documents being lost, or an employee acting improperly or dishonestly. You can limit these mistakes to the best of your ability within the company, but you may still get sued by a disgruntled client or associate.
Professional indemnity insurance is a specially designed product which helps businesses to cover themselves financially against the costs of litigation. Depending on the policy you opt for, this professional insurance covers compensation payments, fines and legal costs, whether you win or lose your case.
Who is it for?
Most large companies and international corporations have professional indemnity policies as standard – due to the greater legal risks they face every day – but in some ways, this kind of insurance is more crucial for small or medium sized businesses. This is because, compared to the vast assets of global companies, smaller operations have much more to lose during the litigation process.