For entrepreneurs who are committed to the success of their enterprise, professional liability insurance is a must. It’s easy to convince yourself that with the level of service you provide, nothing is going to go wrong. However, this simply isn’t something that you can guarantee. Irrespective of whether you’re the most skilled of architects, solicitors or accountants, mistakes happen. When they do, it’s professional liability insurance that might just save your business from destruction. If you’re wise enough to recognise that one wrong turn shouldn’t be enough to end your enterprise, then professional liability insurance is for you.
How It Can Help You
When ‘business injuries’ occur as a result of a mistake on the part of a service provider, they can prove very costly if they proceed to court. The sum total of proceedings can be enough to destroy a business. This is where professional liability insurance from companies like Catlin comes into play. Specially designed to protect professionals from legal claims made by their clients, it guards against ruinous charges levied at your business.
Comprehensive policies will not only protect you against the cost of the claim itself, but will also contribute towards, or cover the cost of, defending against a claim. This will usually involving footing legal fees, which business owners are liable for in the event that a complaint is upheld.
The Rules Relating to Professional Liability Insurance
In some cases, professional liability is not just a choice but also a requirement. Professionals practicing accountancy or financial advice are obliged to take it out before they can operate. If they’re not sufficiently covered, then it is against the law for them to trade. Some trade associates will also make it a requirement for anyone wishing to join.
However, the decision to take out professional liability insurance should be based on far more than whether or not it is required of you; just as important is the way that potential clients will perceive your business on the basis of this. Many people who want to invest in your services will expect you to be sufficiently insured, and if you’re not they may simply be unwilling to consider you.
Aside from anything else, professional indemnity insurance really does make good business sense. It is impossible to guarantee that neither you nor any of your employees will make mistakes. If you do, doesn’t it seem foolish to gamble with losing your whole business for one decision that went wrong? Don’t risk it. Take out indemnity insurance today and keep your company guarded against claims.