You may have property cover and employee disability insurance, but not having professional indemnity insurance will cost you a lot of money. You may wonder What is meant by professional indemnity insurance. Professional indemnity insurance is an insurance that covers all the claims and defense costs in case of a third-party injury.
It means whenever a third party, say a customer or a patient feel wronged, and they can sue you. Their lawsuit may cost you and your business a lot of money. For such cases, a professional indemnity service is helpful.
A lot of people can take professional indemnity insurance like doctors, lawyers, architects, contractors, and many more. Businesses can also have this type of insurance to save their profit. Here are a few purposes of professional indemnity insurance.
To save you from your mistakes
You may commit a professional error unknowingly. It can’t be your intention to harm the third party, but if you do cause any harm due to omission or negligence, there is no way around it. You can either ask forgiveness for your mistake. Or go to the court for your error.
If the third-party / effected party decides to sue you, you will face problems. The first biggest problem is financial pressure. There will be defense lawyer fees and all the extra-legal costs. In case of emergency, professional indemnity insurance helps you out. It is a safety net.
To keep your business profitable
Whatever you earn or make is safe under professional indemnity insurance. How? Because it covers the legal costs of lawsuit and defense. You won’t pay for the lawyer and extra fees.
The premium you pay for the insurance will cover the costs of the lawsuits. This way, your business stays profitable. Whatever money you make or your company makes, stays in your pockets, and isn’t spent on trials. It is a smart way to save the profit and keep your business going while the lawsuit goes on.
Saves you from unnecessary stress
If you insure your business against property damage, employee disruption, then you can also insure your business against unjustified lawsuits. Sometimes the customers or the third party are out to get you.
Professional indemnity insurance protects you against misrepresentation, inaccurate advice, negligence, and violation of fair dealing. When your insurance takes care of all this, you can be rest assured that lawsuits won’t put a dent on your profit.
Saves your name
Sometimes the liability claims cases against you or your company come out in your favor. In cases you are innocent, your professional reputation becomes clean. Liability claims can disrupt your business, and also cause professional instability. However, once you win the case, you earn your reputation back.
You can’t take Professional indemnity insurance from any insurance provider. They must be experienced like iSelect. It offers adequate professional insurance that suits your business needs. Moreover, it provides plans that suit the long-term goals of your company. It is wise to trust an experienced insurance company with professional indemnity insurance.