We previously introduced you to Professional Indemnity Insurance and how it can cover your bases, now we’d like to take a look at the top five reasons why you need this type of cover.
Each day professionals need to make decisions. Businesses that provide professional services or advice run the risk of claims against them if their advice or service turns out to be unsatisfactory.
Protect your reputation
In business, reputation is crucial. It can take years to build one, but an accusation of negligence, professional misconduct, or a breach of your duty of care can destroy it in the blink of an eye.
Whether you believe you are in the wrong or not, if a client’s complaint relates to a potential mistake that you have made on the job, there are grounds for legal action against you.
It might be compulsory
One of the first places to check this is with your industry regulator or professional body. They will be able to advise if a minimum level of cover is required with your policy.
It is a common requirement for service providers who work for local or central government or an organisation with insurance listed as a condition of the contract.
Out of your control
As careful as you may be, unintentional mistakes, accidentally omitting information, making an error of judgement or providing the wrong advice can happen to the best of us.
Unfortunately, accidental wrongdoing can lead to a claim, making Professional Indemnity insurance vital for protecting your business and its reputation.
Legal costs
The importance of having Professional Indemnity insurance is often underestimated by small businesses, especially when it comes to adding up the legal cost associated with defending a claim.
Even if you’re not found negligent, the related legal and court costs could be enough to cripple your business financially.
Cover loss of business
And it’s not just the financial aspect to worry about. Court cases can drag on for ages, taking up your precious time and resources. How will you be able to recover from days of lost business if you are required at court attendances and legal proceedings?
How can we help?
At Wayne Grayson & Associates, we believe an informed insurance decision is the right one. Whether you’re after a business or personal insurance, our expert brokers will ensure your insurance is the right fit for you.
Our PI Insurance is designed for professionals who provide a service to their clients and provides cover if you make a mistake: an act, error, omission, or through conduct being misinterpreted.
Contact one of our Auckland-based insurance brokers for advice on the best solution to suit you or your organisation.