Professional indemnity insurance - a must have coverage for the consultants

Consultants work under difficult circumstances; they have to take up certain risks. If a client incurs a financial loss because of the advice given by a consultant then he or she is liable to make a claim against the consultant for the losses suffered by him.

Professional Indemnity Insurance can help the consultants as well as their clients to have full peace of mind. The client will be very happy if they will be covered and you can be relived that the financial losses of your clients are being covered by the professional indemnity insurance company.

Professional indemnity insurance can usually be taken up as a part of an overall business insurance policy. The business insurance cover can form the core of the consultant’s insurance cover. The consultant can even add some extra cover if they think that they need it.

Liability Insurance

With increasing globalization and industrialization, the need for liability insurance is also growing very fast. In the present perilous and unsafe world, liability insurance is very important the companies. The businessmen should predict the amount of liability insurance claim on the basis of the risk related to their business. Also with the help of professional liability insurance, many professionals such as lawyers, accountants, architects etc are protected from the claims that can be made by their clients. Professional liability insurance protects them against the monetary losses that can happen. A number of professional liability insurance companies are available to provide liability insurance to both large as well as small businessmen. Even the insurance brokers or agents can be consulted for the same. So in a way liability insurance is a back-up plan available for all the businessmen and servicemen who don’t want to come across any professional crisis.

Professional Indemnity Insurance: an effective tool to protect professional honour

As its name suggests, professional indemnity insurance is a kind of insurance policy that protects professionals from any ‘third party claim.’ A professional who is engaged in any kind of professional service is subject to ‘professional indemnity claims.’ While serving to clients, professionals sometimes may commit error, omission and negligence that may turn out to be a disaster for their careers. Hence, having professional indemnity insurance policy may protect these experts when they are accused of a professional negligence. At any point of time, they can be dragged to a court and ask to pay for the loss occurred.

The insurance protects professionals when they are covered under a policy not when the claim is made. So, think over it carefully if you have any plans to cease or wind off your operations as anyone can make a claim against you.

Professional indemnity insurance is an effective tool that protects your professional interests in times when you are facing a major financial as well as professional crunch.

Professional Indemnity Insurance for Consultants

If you are working as a consultant and earn living by offering your skilled advices to individuals and companies in exchange of a fee, professional indemnity insurance policy is must for you.
For example, you have been hired to provide advices on a matter. While working on the task, you commit an error capable enough to cause a loss of millions of dollar to the client’s business. May be anyone of your staff member is responsible for the leakage of confidential data or the expenditure have crossed the set limit or you have changed the final outline of the plan without having a word with the client – in such conditions, you can be dragged to a court and ask to pay for damages.

Professional indemnity insurance indemnifies professionals against any third-party claim made by clients in case when they are dissatisfied with the provided service. In many cases, professional indemnity policies pay for the out-of-court settlement between the professional to protect the former’s reputation which is always at stake.