Choose Professional Indemnity Insurance to Ensure Smooth Business Operations
Professionals are expected to perform as per the standards of the professional bodies under law. They are likely to face legal liability if they fail to abide by the standards of code of conduct in their profession. Under such situations, they are in need of a support that can help them face the subsequent loss and litigations.
Professional indemnity insurance (PII)
Any professional ranging from a report writer (journalism) to software designer, chartered accountant, architect, physician, etc. – all face the risk of legal liability while executing the profession in service of a third party.
Hence, they should consider protecting themselves by taking an appropriate insurance cover that can help them handle the losses resulted from these legal risks. One such cover, which is tailor made for professionals to enable them face these unexpected risks is profession indemnity insurance (PII). Every professional, thus, should buy a professional indemnity insurance to ensure smooth functioning of his business.
Things covered under this policy
As a professional, if you take this insurance, you would reap several benefits as it covers the following.
Loss of important files or data: An important aspect of business is data. While a company transacts with the client on business, the confidentiality of data is significant. For this, the parties might sign a non-disclosure agreement with few employees. Sometimes, the data or file might be unintentionally passed to the third parties because of transaction between the company and the third party. Sometimes the data or file may be lost because of technical problems. The financial loss incurred due to these actions is covered by PII.
Accidental negligence: In course of business transactions between a company and its client, negligence can occur either because of overlooking the data or as a matter inadvertently presenting erroneous data because of some sudden impulse. A hypothetical example: One of your employees while processing the data deletes those of a client because of some sudden unexpected event. Note that the situation is distinct from one that arising because of ‘negligence’. PII offers coverage for losses incurred form such kind of unintentional errors.
Dishonesty by employees: When a company employs an individual, the assumption is that the individual would be scrupulously honest while working for the company. However, it might not always be the case. In such unforeseen circumstances, the company is likely to face liability on account of breach of contract as a result of loss of data, document, or monetary asset, etc. These crucial losses are covered under the PII.
Intellectual property infringement: If there is any ‘unintentional’ infraction of copyright, trademarks, broadcasting or telecasting rights, PII would help. Note that PII is not going to help, should the infractions be deliberate.
Advantages of taking this policy
Professionals are advised to buy PII in their own interest and to stay assured of smooth business. There are certain advantages of this insurance.
PII protects a professional from any legal liability arising as a result of executing a transaction. It also compensates the policy holder by providing the cost of litigation in this regard.
Next, this policy covers the expenses involved in finding a way to rule out such legal liabilities in future. Such measure would make it easy for the parties to settle the issues without making recourse to a court of law.
Some companies put PII as a conditionality to allow a party to work with them. It is of course, to protect the interest of the company. Hence, it is advantageous for you to buy this insurance.
This insurance also protects you against liabilities as a result of accidental happening which may result in wrong doing.
If you face a legal liability, and you think that you have been maliciously targeted for a fault of none of yours, this insurance is useful. Such litigation entails massive costs and time lags. The insurance policy covers the expenses involved in this litigation. This insurance is especially useful for small and mid-sized businesses as such firms have neither the expertise nor resources to afford the litigation.
As a professional, you face liabilities for diverse reasons. It may be based on one or the other reason. Even if you are an expert in your avocation, still buy it. Who knows, you might face one on account of a common everyday impulse.
Keystone Insurance Group is Ireland’s premier supplier of public liability insurance and business insurance solutions to Irish industry. We offer a broad range of builders insurance, office insurance and professional indemnity insurance products. Our experienced and professional team quickly arranges quotes for all classes of business insurance.
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