Owning a business has its perks as well as challenges. If you get everything right, you can be assured of getting decent returns on your investments as well as increase the value of your business considerably. Unfortunately, a business that has been built over a period of several years, can be destroyed in an instance. A fire can burn down the business while burglars can break-in and steal valuables. There is also the risk of lawsuits, which may come with financially crippling financial damages. There are businesses that have previously been forced to file for bankruptcy just to avoid paying damages awarded in a malpractice lawsuit. The good news is that professionals can purchase an indemnity insurance policy to protect themselves.
What is Indemnity Insurance?
Professional indemnity insurance is also known as professional liability insurance. It is an insurance policy that is designed to protect professionals from any errors or omissions they commit while serving clients. When a client files an errors & omission lawsuit or a malpractice lawsuit against you, the professional liability insurance policy will pay all legal fees charged by defense lawyers when fighting the claims made by third parties.
The policy will also pay any damages or costs awarded by the court in case you lose the case.
With indemnity insurance, you can be assured of serving your clients without worrying about lawsuits. Most lawsuits are usually related to claims of inadequate service, advice or designs. This insurance policy is meant for service providers, such as web designers, graphic designers, engineers, architects, business consultants and the likes. If you are a professional who wants to have a thriving career, you must have indemnity insurance before you start offering services to the public.
Who Needs Indemnity Insurance?
There are many professions that require service providers to have this type of insurance before they can start offering services in the industry. IT professionals, teachers and tutors, designers, recruitment agencies, technical and engineering contractors and business consultants all need liability insurance. The cost of liability insurance differs from one insurer to the next and from one person to the next. On average, professionals can expect to pay around $10 per month, or around $120 annually in premiums. Some professions may require higher premiums than others. The amount of liability coverage offered by a policy will also affect the cost of premiums. The wider the extent of the cover, the higher the premiums. To get a more accurate quote, it is recommended you get in touch with a suitable insurance broker.
Choosing an Insurance Broker
There are many factors to be considered when searching for an insurance company. Below are some of the main factors to be considered:
i) Area of Focus
There are many types of insurance products on the market. Insurance brokers usually focus on a specific insurance policy. There are those who focus on car insurance, health insurance, life insurance, business owners’ insurance and the likes. To get the best professional liability insurance, it is critical you only shortlist insurance brokers who have specialized in professional indemnity insurance policies.
To get the best results, it is recommended you consult independent insurance brokers. This is because they work with many insurance providers, so they can help you choose the best policy for your unique needs.
The top insurance brokers have a wonderful reputation in the industry. They have high ratings and many positive reviews because they have consistently managed to meet client needs and expectations. Therefore, only highly rated firms with many positive reviews should get any consideration.
You want the best quote for your indemnity insurance. For this reason, you have to compare the premiums provided to you by different brokers. Insurance brokers with the most competitively priced insurance products should be given special consideration. This will help you save some money.
Benefits of Indemnity Insurance
a) Peace of Mind
With this type of cover, you can have peace of mind when offering services to the public. This is because you’ll know that any lawsuit that may arise from errors & omissions will not have an impact on your finances. Your customers will also have peace of mind knowing that in case they experience any injuries, they can always be compensated by your insurer.
b) Save Money
Paying the damages awarded by a court in a lawsuit can put a huge dent on your finances. After all, most cases usually lead to tens or even hundreds of thousands of dollars in damages. If you purchase indemnity insurance, however, these damages and legal fees will be sorted out by the insurer.