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When does professional indemnity insurance make sense?

Professional-Indemnity-Insurance-squareIf you offer a service that provides advice, a professional service or provide design input to your clients, then you may consider investing in professional indemnity insurance cover.  This is also known as professional liability cover and is regarded as an essential type of cover for some client engagements.

So what can  investment in such a cover offer for you and your business?  Indemnity insurance aids in covering both expenses and legal costs if it comes to defending a claim from your client.  It will also cover any compensation costs that may be awarded due to the claim.

 

“But I do great work and get along well with my clients”  you say!

In that case you may still want to consider this: Clients who are satisfied with your work may be unlikely to claim, but if they face having a claim made against them, they may attempt to pass the problem onto their suppliers.
Many organisations who use consultants and sub-contractors for professional services require their suppliers to carry up professional indemnity insurance as a condition for doing business. Having cover in place is key to winning business.

Business risks

Without indemnity insurance yourself and your business are exposed to the potential risk of being sued without having the resources to mount an effective response. The disruption, additional work and stress could adversely affect you and your business. Many business owners are not aware of the damage an unpredictable event could cause their business.  This could be in the form of a small mistake made in a quality control project, the loss or theft of an expensive item of equipment or an accident at their business premises.

Indemnity Insurance – An easy and cost effective solution

Any of the above events could lead to you or your business being sued for millions of pounds; however, if you invest in a quality control and process management insurance, you will be able to relax knowing that you have everything covered if any one of the above events were to take place. For these reason many providers of professional services choose to take out professional indemnity or professional liability cover.  One provider of such cover is Markel.

MARKEL-logo-squareMarkel offer cover for over 200 professions, meaning there is most certainly a cover to suit your needs.  They also feature a cover that starts from just £5 per month over 10 interest free instalments, which is great news for those that require an expert insurance policy at an affordable price.

If you are a process auditing professional looking to invest in a quality control and process management insurance then look no further than Markel. The unique quality control and process management insurance provides expert cover to a huge number of process auditing professions.

This article is sponsored by Markel Direct, a specialist on-line insurer providing cover for professionals, professional practices and consultants

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