If you’re a service provider working with the public, it’s crucial to have professional indemnity insurance. Neglecting to do so may present unforeseen and hazardous risks. The insurance isn’t burdensome to acquire or pricey – you can even secure it online.
The major risk of forgoing professional indemnity insurance becomes evident when facing a claim. In the worst-case scenario, such a situation could result in significant financial damage, potentially leading to the loss of your business or even your home. Thus, it’s necessary to have this insurance, regardless of your profession. For instance, pub owners can opt for pub insurance, while office proprietors can go for office insurance.
Your services may be top-notch, but it’s worth remembering that we live in an era where lawsuits are commonplace. While this was primarily a characteristic of the US, it’s become increasingly common in the UK too. With many lawyers offering no-win, no-fee services, it’s easier than ever for people to file claims for even minor errors, be they financial or emotional. Even the most careful among us can make mistakes, often due to unfortunate circumstances as opposed to professional misconduct.
Certain professionals, such as financial advisors, accountants, and legal advisors, are legally required to have indemnity insurance. Similarly, many professional organizations require their members to be insured. While this may not be a legal requirement for all professionals working with the public, not taking out such insurance is a shortsighted business decision.
Should a claim be lodged against you, proving your innocence may lead to a lot of unexpected expenses, regardless of whether the claim is justified. Moreover, if you’re found liable and are being held to pay compensation, the circumstances could turn very grim.
A basic cost-benefit analysis will demonstrate the value of being insured. The minimal expenditure on insurance will offer you protection worth several million pounds, making it an investment worth considering.
