Professional indemnity insurance can safeguard your business from claims for compensation from unhappy clients, even if the events which led up the claim have happened some time ago. Imagine having successfully completed a piece of work for a client then receiving notice, months later, that the client is making a claim for damages for an error or negligence in the work or services provided. Without professional indemnity (PI) insurance the process of seeking appropriate legal advice and all expenses incurred in defending the claim will have to be met by you and your business. This can cost a lot of money, and it may not be possible to easily pay these expenses from the funds of your business.
The purpose of PI insurance is to provide guidance and support in these situations as well as the financial resources to respond without having to find the money from within your business. If you provide professional advice and services to your clients, then it’s a good idea to take out PI insurance cover so that if the worst does happen it does not dangerously de-stabilise your entire business.
As long as you continue to pay your premiums you will be covered for potential mistakes whenever they occur during that cover. If you decide to close your business, it is also worth considering having a residual form of PI cover so that if a claim is made after the business has ceased operating you will still be covered. You can find professional indemnity insurance options at www.endsleigh.co.uk. Even with the very best of business practices it is impossible to avoid all mistakes, so the best course of action is to take out insurance for your business to cover this. It gives peace of mind to you as business owner and reassures your current and potential clients.
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