Essential Insurance For Professionals
Every business tries to be the best they can be and
nowhere is that more important than in customer
satisfaction. Although you may do everything you
possibly can, not every customer will be satisfied
and many may take your business to court and attempt
to give your company a bad name. Advertising and
marketing organizations run the risk of infringement
of copyrights and intellectual rights as well as ill
affects of any advertising campaign. Consulting
firms and engineering companies can quickly find
themselves in lengthy court battles for several
reasons even if they are found not to be liable for
any wrongdoing. These are just a few of the many
reasons why professional indemnity insurance is a
necessity for several types of businesses in the
United Kingdom.
Professional indemnity cover is insurance against
the many situations that can leave you and your
business in a financially taxing and time consuming
ordeal which can easily destroy your company's
reputation - or even the company itself.
Professional indemnity provides the financial
backing and sometimes even the legal team to
represent your business in these cases and is
actually mandatory under most government contracts
in the UK. Professional indemnity can protect your
business from just about any claim from an unhappy
client who alleges that the advice you have given
has led to a loss and is particularly important in
the advertising industry. Advertisers have the risk
of the advertisement having a negative effect and
the client suing or the material somehow infringing
upon a copyright.
Consultants and specifically IT consultants are at
risk for lawsuits in which information or advice has
lead to an undesired outcome. Even if the case turns
out to be in your favour, the process of arguing and
proving innocence can be a serious strain on all
your resources and in the process you may lose even
more business. IT consultants can be found liable
for many types of costs associated with data loss,
system failures and loss of revenue just to name a
few. Engineering firms have several aspects to
consider for professional indemnity insurance due to
the fact that construction and engineering projects
can lead to injury or loss to the public and the
client. A third party engineering organization that
designs a project that fails will have to prove that
the design was not at fault and if it is, provide
the proper compensation.
Some other common claims for professional indemnity
are theft and negligence. Theft of money or
securities, directly by you or an employee can
quickly ruin a companies reputation. Regardless of
the outcome of the case, you need to be prepared
financially to address each instance that will
inevitably come. Professional indemnity providers
often provide a team to advise you on your
particular situation and help you through each claim
including protecting your business's image and
reputation.
How much cover is required is a common concern and
varies greatly depending on the type of business and
what your specific risks are. It is very common that
clients themselves will require a specific amount of
professional indemnity protection before any work
can begin and this amount will change depending on
the type of work being performed. Government
contracts are one example; in the UK most government
contracts and consulting positions require at least
£5 million in professional indemnity protection. In
some cases it may be prudent to implement a
retroactive indemnity policy to protect you against
situations that may develop from past projects so
the first step to protect your business's reputation
and finances against these situations is to assess
your needs -each situation is different but you
should always carry as much protection as your
business can realistically afford. Remember that
every insurance policy is different. ALWAYS read the
policy carefully to make sure that it has the right
cover for you!
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