As part of your business activities, you may have been asked if you have professional indemnity insurance. If you have started a new business or are just finding your feet in the business world, you may not have realised how important having professional indemnity insurance is, or even in fact what it is.
What Is Professional Indemnity Insurance?
You need professional indemnity insurance cover to protect your business from claims made against you by clients arising out of your professional activities. These may be either reputation damaging or financially crippling and they may also be from clients who are not only dissatisfied with the service you have provided but have suffered financial loss themselves.
Areas of your business that professional indemnity will normally cover include:
- Libel and slander
- Loss of documents
- Dishonesty of employees
- Unintentional breach of confidence
- Infringement of copyright and intellectual property rights
- Previous firms or previous partners
Having professional indemnity insurance will cover you in case you make a mistake as part of the professional services you have provided to a client. These policies are flexible, offering varying levels of cover, which means that you can buy a policy that is exactly suited to your own business.