Professional indemnity insurance protects any professional from claims made by any dissatisfied customers. Should you have misrepresented your services or even provided a service that ended up damaging their reputation, there is a chance that you may be liable to many different potential risks. Indemnity insurance will cover you for any claims for damages that might arise in these situations.
But who exactly is likely to need such insurance?
The list of industries that will require such insurance is growing all the time. Not only do we live in an increasingly litigious society, but more and more people are being classes as ‘professionals’ with sectors as diverse as IT and driving instruction now coming under the bracket of careers that may need indemnity insurance.
If any part of your working day could leave you open to claims of breach of duty, negligence or even slander, then there is a good chance that you will need such insurance, and the list of potential claims that can be made against companies can be vast.
Ultimately, almost any professional or company may need professional indemnity insurance, and what’s more, many businesses today will require professionals to have this insurance before they look at doing business with them. The level and type of insurance needed can vary drastically, however, and rather than purchasing a generic insurance policy, it may be wise to speak to an insurance company to see which types of tailor-made packages they can offer to cover an individual or company in your precise line of work.
Finally, it is worth remembering that claims can be made at any time. Therefore, even once you have finished working on all the contracts that might need such insurance, it is wise to keep a policy running for a while in case a claim is made in the future for past work.