Professional Indemnity Insurance
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Why do you need professional indemnity and liability insurance?
Any business looking to follow rules and regulations in the workplace needs to consider a policy of professional indemnity insurance, as well as employers' liability insurance. With litigation against companies still as popular as ever, the cost of a negligence claim can still be particularly crippling for a business without such cover. For this reason, many business owners will seek to protect themselves by taking out insurance from their policy provider, such as Markel's professional indemnity and liability insurance.
Businesses without professional indemnity cover are only covered by company coffers should they be judged to give bad information or carry out poor practices. What's more, a lot of problems happen by accident, such as confidential data being sent in error or a case of flawed consultancy advice.
Employers' liability insurance, meanwhile, is a similar situation applied to the well-being of staff while they're working. If a worker becomes ill or gets injured at work, individuals can be held responsible and face compensation claims. This type of insurance is a legal requirement for most businesses that employ staff, so it must be bought.
The level of insurance required by an organisation depends wholly on their business, turnover and the size of contracts being carried out. Often, firms working with contractors will demand there be a minimum level of cover in place as part of their working agreement. Most providers of the aforementioned forms of insurance will typically offer between £50,000 and £5 million of cover, should things go awry.
When looking into the best policy for a business, owners must do their homework. They need to read industry magazines related to their line of work to assess levels of risk in the profession. Many other companies should look at joining a professional association that offers bespoke professional liability insurance for practitioners in their specific field.
The golden rule, however, is that people should buy the highest possible level of business insurance that they can afford. After all, company leaders need to understand just how much a case of bad practice can cause their day-to-day earnings. Whether it's a marketing faux-pas or a computer system that is poorly-installed, these can rack up serious debts - be sure you aren't one of these businesses facing massive bills.
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