Saturday, July 14, 2007

Professional Indemnity Insurance

Do not risk your business get professional indemnity insurance

If you are a freelance contractor, professional Indemnity insurance will protect you in case of unforced errors from your part have led to projects being cancelled because of which your client has sued you for the failure. In case such a scenario occurs, you need to have the resources to protect yourself because legal proceedings and claims can often turn out to be costly. It really does not matter how careful you are while ensuring that you deliver everything as promised to your clients, you cannot prevent unforced and unintentional from occurring. Professional indemnity insurance is the best and the only option that can save you from such unwanted incidences. Interestingly, you can even use your professional indemnity insurance to cover you against potentially payable damages.

There is a widespread misconception that professional indemnity insurance is costly. The reality is, in fact, quite contrary to this. In fact, what you pay for professional indemnity insurance depends on such factors as your yearly income, the nature of your business, the industry that you cater to, and the way in which you undertake a contract. For you knowledge, professional indemnity is claimable up to 5% allowance as a 'Schedule E' expense. When you consider these facts, professional indemnity insurance may no longer appear to you to be as expensive as it appeared before.