Individuals who make major decisions on a regular basis, such as solicitors, accountants, and mortgage brokers, are putting themselves at risk of sustaining a legal claim for giving out incorrect advice to both individuals and companies. Although the risks are not particularly high, the claims which do occur might be considerable as larger companies can and do pursue these issues through the legal system.
Professional Indemnity Insurance
Professional indemnity insurance is usually a requirement for the previously listed professions as the industry standard because claims can have such a catastrophic effect on both individuals and businesses. Usually, it is easy to acquire protection against such an event as a professional indemnity insurance online quote can easily be found and then acted upon.
But what’s wrong?
Basic professional indemnity insurance is not usually sufficient enough cover because legal cases which come from large companies can quickly wipe out your insurance limits, and then you have absolutely no protection at all so any further costs will have to come out of your own pocket.
What Can I Do?
By all means consider looking at a professional indemnity insurance online quote just to check the prices, but take into account some of the other factors which come into play in order to protect yourself against the most expensive claims which could be made against you.
Your potential insurance provider will look at the following when considering the level of cover in your professional indemnity insurance package:
• The client base which you are dealing with is critical because if you are dealing with high profile clients then mistakes can be much more costly, which means you will need a larger amount of cover than if you were purely dealing with small businesses.
• The type of work you do is also very important because the history of legal cases can also be looked at so your insurance company can accurately assess the risk you are at should you make any mistakes.
• Your business status is relevant. If you are a limited or public limited company it is the entity being insured but if you a sole trader or in a partnership it is you as the individual that is the insured party. In this case getting the right amount of cover is essential as being under insured can result in the loss of personal assets as well as those belonging to the business.
A professional indemnity insurance online quote is available from Specialist Risks