Every business needs protection against claims for any loss or damage made by either a client or other third party. By taking out a Professional Business Insurance policy, you then have cover for a mistake, or if found to have been negligent with a service that you have provided. This way, you have peace of mind, knowing that you are able to claim from your insurance and not having to pay legal costs from your own pocket or from that of your business.
It is however, a regulation for many professions to have to take out a business indemnity insurance cover as a registered member of a professional association. Among these are accountants, architects, solicitors, mortgage brokers and financial advisors. There are also many other professionals who make a point of covering themselves with insurance. Most consultants in advertising, designing or else in PR, feel that this type of cover is necessary for them as well.
Essentially, business indemnity insurance is sensible for anyone that is dealing with ‘intelligent’ services rather than a physical product.
Important to note:
Do remember that you can only make a claim on your policy if premiums are up to date. Should a policy lapse and for any reason you have not paid up to date, or if you have cancelled the policy, claims against it, will not be acknowledged, and you will have to bear the costs yourself.
Should you close your business or retire and cancel your policy, it is necessary for you to arrange with your insurers to have a ‘run-off’ period of cover afterwards, in order to pay for claims against you when your business was operational.
The same run-off period is applicable if you should decide to change your insurers, unless you can arrange with the new insurance company to accept any previous claims.
Make sure that all contracts with clients have sufficient information attached at the time of signing; with easy reference and well filed, should there be any claims against them at a future date.
Business indemnity insurance is a specialised area of insurance. Before taking out and signing for a policy, consult with an insurance expert to give you advice for the best particular needs of your business.
Found out more and get quotes for business indemnity insurance at specialistrisks