Professional Indemnity Insurance (PII) is a kind of insurance for protection of your business. It’s required if you work in a niche service that needs to provide professional advice to your clients. There are chances that you could be sued if your advice doesn’t help the client. Such a policy can go a long way in saving your business. It is a known fact that legal fees and medical bills can be very high for a small business to recover from after paying the huge amount.
If you decide to buy PII for your business protection, you should know some important things before choosing one. Here’s what you should be aware of.
PII is undoubtedly one of the costliest insurances, but the premium amount you need to pay is negligible when compared to the compensation amount you would have to pay if you are legally responsible for the damaged property, financial losses or injuries of third party. Now that you know the importance of this insurance, ensure that you do your research cautiously. Visit some insurance firms and find out the details. Ensure that you read the terms and conditions of the policy to know how much of the medical expenses and legal costs will be covered if any damage is caused due to your advice to your clients.
Ensure that the insurance firm you choose is duly regulated and licensed. It should have all the essential accreditation and licenses by the concerned financial authorities.
Find out the level of experience possessed by the insurer with respect to your specific industry. There are several insurance firms, which may have recently began providing the particular kind of PII and they might not yet have experience in offering services in your particular niche. You can always try dealing with new players in the industry – there’s nothing wrong in that, though it would be more beneficial if you opt for one with few years of appropriate experience, so that you can stay assured that you are dealing with a capable insurer.
Next, you have to ensure that the insurer provides an extensive variety of services, which should also include support services. You will also have to ensure that the professional indemnity insurance policy you avail has an extensive range of coverage and that you can gain access to the customer support team whenever you need assistance, especially at times of emergency.