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In some industries and careers, especially freelancers or business owners, professional indemnity insurance is very important to protect you in case of lawsuits. Here’s what you need to know about it.
This depends on your business, your clients, and your potential liability. Your insurance needs to be able to cover the total rectification costs and the legal costs of a claim against you. If you’re a federal employee, look into Starr Wright USA reviews for specialist help.
Some professional bodies will recommend or require a level of cover. If you work in an industry governed by a regulator, check the minimum mandatory insurance to make sure you comply with the limit of indemnity.
For example, chartered and certified accountants are regulated by professional bodies that require you to have a level of cover at least two and a half times your gross fee income for the last financial year.
A specialist broker can advise on the level of cover needed in your industry, after some discussions with you on your line of business and their knowledge of the market.
A good broker is a smart idea to get help from, as they can offer your independent professional advice on the best cover available for you. Many insurers can also only be accessed through a broker. Professional liability and indemnity insurance are dominated by specialist insurance brokers, and most premiums are placed through insurance brokers. You don’t need one, but it can help.
You should always ask your broker for a review of your PI insurance a couple of months before your renewal date. This will allow the broker time to get a thorough view of the current market in your profession and get a full understanding of your business. You should also ask them to give you a range of limits, so you can fully consider the cost and risk at different levels before you renew.
Different insurers will give you different conditions on the timing of notification, which if breached can result in your being left uninsured.
Insurers will often use different wording, such as requiring notification of circumstances that are ‘likely’ or ‘that may’ give cause for a claim. Understand that differences in wording will change the emphasis on your obligation to notify. Where ‘that may give rise to’ gives less emphasis.
If a client makes a complaint about you, and you think it’s likely to lead to them or a third party suffering a financial loss, then it is a very good idea to notify your insurer as soon as you can. Even if you feel a claim is unjustified, it doesn’t remove your obligation to notify your insurer.
If you know you have failed to meet the standards required and could cause financial loss, notify your insurer, even if your client is currently not aware of the problem.
This is a collaborative post.
Welcome to Birds and Lilies! I'm Lou: mother, blogger and freelance writer. This is my lifestyle blog, where I talk about motherhood, infertility and IVF, beauty, my love for food and wine, as well as my thoughts about stuff, and our real-life and travel adventures.
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