How Professional Indemnity Can Cover Common Risks

 

If you’re operating a business, no matter how large or small, it could be advisable to have professional indemnity, also known as professional liability insurance. There are many challenges and risks that you can face in the professional world, and some mistakes and errors can set you back in terms of time, money and reputation. Some might be more obvious, but others you might not have thought about. So what are some of the common risks in business that can be covered through a suitable professional indemnity insurance policy?

Insurance Made Personal

Bad or Wrong Advice

Professional indemnity is all about providing cover when offering professional services, and this includes giving expert advice. If a client acts on advice you’ve given them, such as from a consultancy standpoint, and it has a negative impact on their business, then they may go down the legal route to make up for the bad, wrong or misguided advice that your business has provided. Having professional indemnity insurance can cover for this risk.

Professional indemnity is all about providing cover when offering professional services, and this includes giving expert advice. If a client acts on advice you’ve given them, such as from a consultancy standpoint, and it has a negative impact on their business, then they may go down the legal route to make up for the bad, wrong or misguided advice that your business has provided. Having professional indemnity insurance can cover for this risk.

False Claims

Whatever business you’re operating, you’re likely to eventually come across a bad customer. Whilst some customers may have legitimate grievances with a member of staff or your business, other customers may start making false claims about your business. This could be through the form of bad online reviews, which could harm your reputation and your lead generation, but it could also be in the form of a legal complaint, which can be costly. Professional indemnity can ensure you’re protected from legal costs, and even to loss of income as the result of fraudulent and false claims through libel, slander and/or defamation.

Handling Client Information

No matter whether you’re a B2B or B2C company, handling client information and data will be a common practice, which needs to be done with care. Even if it’s not highly-sensitive data, businesses still have to comply with data protection and GDPR laws. If client information is misused, stolen or lost, then your company can be held liable for the mishandled data. By including cover for client data in your PI insurance policy, you can protect yourself from expensive legal costs and fines.

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