What is professional indemnity insurance?
A professional indemnity insurance is a type of insurance that is designed for professionals and businesses who are catering to specific needs of general customers in a form of a service or an advice. It protects individuals and businesses against the monetary compensation and legal costs associated with third party damages that may arise during the scope of their work.
In simple terms a Professional Indemnity insurance covers losses occurred as a result of negligence of a professional or a business. It becomes important for any business or an entity to acquire get easy quotes for professional indemnity insurance in order to safeguard its assets and reputation from an unforeseen huge loss.
A professional indemnity insurance is further divided in two forms of policies that protect your business from legal claims. These two types of policies are namely a liability insurance policy and an indemnity insurance policy. It is important to evaluate and make sure what type coverage is suitable for your business. This decision totally depends on the industry and business activity you are engaged in. It is worth mentioning that both of these policies can also be included in your insurance. Again it depends on each individual needs and business requirements. So, make sure you have the right cover for your business.
A liability insurance, is usually associated with public, where it protects you or your business from the financial claims resulted out of personal injury, property damage and an monetary loss. While an indemnity insurance, is generally associated to professions, where it protects you or your business against the claims that arise due to negligence, careless act or breach of a duty as a mistake or an error in the performance of professional services.
If you are running a business, it is highly possible that you can be liable for damages or losses to another person or a property. These losses could be anything of a financial loss, a reputation loss, a physical injury or a property damage. Though the indemnity insurance is not mandatory, but for the fact and the likelihood of a high legal action, you might still want to consider it for your business.. This insurance policy is not only limited to a business or an entity. It extends to everyone else involved in the business, such as a principal, employee or a partner, who is acting in course of their duties.
Professional indemnity insurance is a mandatory requirement in many industries across Australia. It becomes obligatory for an individual or a business to obtain an indemnity insurance in order to legally operate in that industry. For more details and knowledge, on your profession or industry, you may discuss the prospects with your industry association or an expert insurance provider.
As a conclusion and regardless of your profession or business activity, Professional Indemnity insurance provides the mental peace to keep you working smoothly by protecting all your indemnification needs. So make sure to obtain the right cover for yourself to protect your reputation, your business and your livelihood from any unforeseen future event that may have adverse effects.