Thursday, November 27, 2008

Professional Indemnity – covering your professional risks

Professional Indemnity is an insurance cover taken by policy holders to face any claims for errors, carelessness, violations or loss. Such claims can turn nasty and be financially crippling for your company. So it is better to take out Professional Indemnity (PI) freelance insurance, in spite of it being an additional overhead.

There are customized products at various levels and numerous insurance companies offer competitive rates. Some of these products have no-charge retroactive cover, low excesses and sub-contractor cover. If you cancel during midterm, you will receive pro-rata refunds. It is necessary to identify claims in your particular industry, as it is specific for this industry. Sometimes you may need compulsory indemnity cover, while for Government employees of some countries, it is compulsory to possess minimum indemnity cover.

3 comments:

angmoh said...

Hi, you may be interested in guest blogging, or us guest blogging on your site. I work for a company called BizCover, who do professional indemnity insurance, and allows people in Australia to compare and purchase policies online (www.bizcover.com.au).

Thanks :)

Jay Parmar said...

You should consider taking out professional indemnity insurance if your business gives advice or offers a professional service to other businesses. It covers you if you are negligent or make a mistake which causes a client’s business to suffer financial loss. It will cover you if you make a mistake in the professional services you have provided that leads to a dispute with a client. If the dispute becomes complicated and nasty, Hiscox can defend your claim - right through to the High Court, if necessary. Even if you lose, the policy will still cover you for any damages you then become liable for, subject to the level of cover your business is insured for.You are also protected if you lose or damage any clients’ documents in your care or if one of your employees are involved in the theft of a clients’ money. Visit professional negligence for more information.

Natalia said...

I do have heard about this insurance policy scheme from my close friends who are indulged in such kind of business. I am still not sure about what category of people do needs this policy and how this policy will serve to them. Your blog is a complete guide to know about this type of insurance policy. Thanks for sharing it.
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