If you work as a professional or have a business that provides professional services, you need to protect yourself with professional indemnity insurance in case you get filed a lawsuit from unsatisfied clients.
What is Professional Indemnity Insurance? Basically, this is an insurance policy that is aimed in protecting business owners, employees, and professionals when they are found at fault for a particular event such as mistakes or misjudgment. Typical types of indemnity insurance will include errors and omissions insurance, and malpractice insurance wherein both types indemnifies professionals or businesses from claims made against the service they have provided.
The most common and sought after indemnity insurance is errors and omissions insurance wherein this particular type of insurance is required or mandatory for particular professions, especially those in the financial industries. On the other hand, deferred compensation indemnity insurance have grown rather popular with many company executives as this particular indemnity insurance protects future money that is owed to them even when the company who owes them money has already filed bankruptcy.
If you practice as a professional, if you get sued by your client for negligence or mistakes you have made, whether the lawsuit has merit or not, the legal proceedings can be a costly matter for you which you will need to shoulder yourself. However, if you have professional indemnity insurance, your insurance company will shoulder the necessary expenses involving the courtroom trials and proceedings. If you truly value your profession and your financial interest, it is in your best interest to be properly equipped with professional indemnity insurance as you would not want to get caught with a lawsuit without the necessary insurance.
While there are some professions and businesses that are mandated to have professional indemnity insurance, not all businesses and professions however are required to have this particular form of insurance. Nevertheless, having this type of insurance can truly save you a great deal of money if you get sued by clients who are not happy or satisfied with your services. Keep in mind that if you can be blamed for something, then they will likely be able to make a claim. These are very litigious times and clients whom you are in very good terms with can sue you for the very purpose of making money from suing you. This makes it all the more important to have proper insurance coverage and protection.