If you are providing professional services or advice to others, despite your expertise in a particular field, rarely some mistakes are bound to occur, which can prove costly. To protect your contract or consultancy from such costly mistakes, and to legally face the consequences of act of negligence or simple mistake, you need the protection of professional indemnity insurance. With more legal awareness, people do not want to lose their money or suffer financial injury due to a mistake caused by a professional service, and they take professional indemnity insurance which can compensate their loss considerably.
You can choose a level of insurance required by you according to your business needs and profile of your clients. Some insurance policies also include special retroactive features which meets risk during the period even before the commencement of cover. Professional Indemnity guards you against the legal claims and covers the cost incurred while defending your service. The insurance also looks after the expensive, stressful and long court cases and saves your finances to a considerable extent. The professional indemnity insurance covers various eventualities like simple mistake, act of negligence, dishonest behavior of an employee, stealing money or information from client, straightforward omission or error. The indemnity insurance includes clauses relating to libel actions due to alleged defamation, and also breach of confidence and copyright issues.