The benefits of Professional Indemnity insurance

Not yet sold on whether you should get Professional Indemnity insurance or not? Let our simple guide show you some of the benefits Professional Indemnity insurance can provide for your business. We delve into how having a Professional Indemnity insurance policy in place can help you stay in business for the long haul, something small business owners strive to achieve.

Firstly, let’s explain what Professional Indemnity insurance is

Professional Indemnity (PI) insurance offers protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.

What are the main benefits of having Professional Indemnity insurance?

1. Protects your back pocket

The reality is that a Professional Indemnity claim to your business can have a devastating financial impact upon your professional business. If you don’t have insurance in place, the cost of having to pay for things like legal fees, defence costs and compensation if awarded could be a major set-back, even in some instances closing businesses for good.

Not having the financial protection of a Professional Indemnity insurance policy could also put your personal financial assets in jeopardy, as they may be required to pay for the claim costs involved.

Professional Indemnity insurance is there to provide cover for your associated legal costs if a claim occurred.

2. Peace of mind

Let’s be frank, operating your own business is anything but a walk in the park and the last thing you need is the worry of a claim hanging over your head. Having the appropriate type of Professional Indemnity insurance policy in place provides you with peace of mind knowing you have something in place should a client make a claim against you.

3. Saves time

If a claim were to occur, you can have the confidence to know that you have the right measures in place to help deal with it, like the legal support that forms part of your Professional Indemnity insurance policy. The last thing you want is to be stressed spending time away from running your business.

4. Safeguards your reputation

You’ve worked hard to build your professional reputation over the years and all it takes is for a claim to send it all crashing down. Avoid the drama by having your Professional Indemnity insurance there to cover the cost of the claim. With some policies the cost of related public relation expenses may also be covered.

It’s always wise to double check your policy to see what is included and excluded in your policy.

If you’re ready to start protecting your business, visit BizCover or give us a call to get your Professional Indemnity insurance sorted. We provide multiple quotes and can get you covered in minutes without the hassle.