Professional Indemnity Insurance (PII) is crucial for the smooth functioning of large businesses. This kind of insurance policy safeguards the company against any compensation risk claimed by customers, which may include legal costs. Furthermore, claims that clients file because of unintentional negligence, omission or error while implementing the professional responsibility are also covered under this kind of insurance. If you have been wondering if PII is required for your business, reading through the following sections might help you get an answer.
Here are some common professions that need PII:
- Accounting and financial services: For these businesses, PII covers claims, which may be filed because of the losses incurred due to the advice that the firm gives. It also covers the legal compensation charges. All kinds of accounting services from bankers to accountants need this coverage.
- Consulting businesses: Such businesses give professional advice to the customers on various aspects. So, it’s crucial for all kinds of consulting companies to buy PII. If customers suffer from financial losses due to the advice given by the firm, then the policy will cover up the claim and the legal charges incurred in the course of the procedure.
- Architecture: In case the professional advice offered by architecture firms does not work out and due to that, the clients happen to file a case against the company, PII covers the legal costs compensation in addition to the damages that have happened due to property or material.
Some of the other industries that need such a coverage are IT companies (from the technical support teams to the programmers), creative businesses (from marketing and advertising to photography firms), engineers, estate agents, and travel agents to name a few. However, this is not an exhaustive list, by any means. If you are still not sure whether your business needs PII coverage, it may help you to ask these questions to yourself.
- Do you deal with data?
- Do you give guidance or advice to your clients?
- Do you provide creative services?
- Do you offer technical services or solutions?
- Is customer confidentiality crucial in your work?
- Do you handle important client documents?
If your answer is ‘yes’ to any of these queries, it would be a smart idea to take a PII policy. If you are still doubtful, you can always seek professional advice from insurance advisors. With the right professional indemnity insurance in place, your business is safe from unwanted compensation claims.