Professionals and businesses get professional indemnity insurance as this is their means of protecting themselves from the expensive costs of litigation. Professionals and businesses can get sued of the services they have provided are substandard or there are errors that they can be held accountable for. If they lose the lawsuit, the affiant will be able to take claims. This means that not only will the business or professional lose money from the settlement, but they will also need to shoulder the cost of the legal proceedings.
It is every right for the professional or business to defend themself from litigation. However, legal fees can be costly, especially when the court trials are prolonged for a lengthy period. If you have professional indemnity insurance, the insurance company will be the one who will cover the cost of the legal fees. This can be very helpful especially when you think of how much savings you can get when you compare the cost of the insurance policy with the overall cost of the legal fees if there is a lawsuit.
In recent years, lawsuits have become common place as professionals and businesses are sued for the simplest dissatisfaction by customers and clients. In fact, even solicitors these days seek the protection of professional indemnity insurance. While it may not be common place for a solicitor to get this type of insurance in the past, these days it has become necessary. A solicitor is well versed in his profession and understands the laws and legislations involving his area of expertise. Even though it is a sign of authenticity, failure to deliver properly and he can be held accountable for it.
Professional indemnity insurance for solicitors has now become important as this helps to protect them from any faults or mistakes they make when providing professional or legal advices and the drafting of legal documents. There are areas where professional indemnity insurance is applicable for different professions, but in the case for solicitors, their professional indemnity insurance policy differs from the rest. While professional indemnity insurance for solicitors does not cover breach of contract or negligence claims, but it does however cover breach of trust, perceived dishonesty, breach of fiduciary duty, and many more. If you practice this type of profession, then it is in your best interest to invest in this type of insurance protection.