Businesses offering advice and services often face risks of claims against their firms. It is important for business owners to protect their businesses against claims of professional misconduct or malpractice. If your business offers professional services and advice to other businesses and individuals, then it is important to consider professional indemnity insurance (PII) cover by 4×4 insurance. PII is offered as part of industry-specific business insurance packages, which are tailored to meet unique business requirements.
PII helps protect a business from claims leveled against a business by disgruntled clients, such as professional negligence. A business can make a mistake that cost their client money, causing the client to sue the business for compensation.
Importance of PII
PII is specially designed to protect professionals and businesses against any legal costs and claims brought against them by third party individuals for alleged damages emanating from acts of omission, commission, or breach of duty in the normal course of discharging professional duties.
This implies that if you act or fail to act in the normal course of discharging your duties and a client suffers injury, financial loss, or even illness as a direct result of relying on your advice, then he or she can take stern legal action against your business or you.
However, with the right insurance policy, one can defend his or her business against the claims raised to prevent financial loss.
The Cover Could Reduce the Cost of Doing Business
It costs money to conduct business. It can cost even more money and time to defend against claims of professional misconduct, malpractice, and breach of duty. One could be held responsible for both his or her actions as well as those of partners, employees, and business associates.
Professional indemnity insurance safeguards the business by offering insurance cover against any claims. This allows you to go about your normal business, knowing that you will be able to handle the worst when it happens.
Please note that even though you may not have done anything wrong at the moment, the cost of defending your business may by far surpass that of premiums paid towards your professional indemnity cover, which will eventually help you protect your business against lawsuit costs.
For instance, if an accountant or tax consultant makes a mistake in the normal course of discharging his or her duties, and the error is not discovered until the job is done, the client could lose a lot of money. In that case, the accountant could be liable for the cost.
Other professionals that may require professional indemnity insurance include architects, journalists, financial advisors, business consultants, engineers, and IT consultants.