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Professional Indemnity Insurance


Businesses face many risks, one of the reputation damaging and financially crippling risk is an unsatisfied client’s claims.

Disputes with clients may be in the following ways:
  • Document loss where data of the client is stolen, lost or damaged
  • Negligence – This may be on the part of the employee in breach of duty
  • Dishonesty – theft of client’s money can give way to liability on part of the company
  • Intellectual Property: Clients broadcasting rights, trademarks and copyrights can be unintentionally made use of by the company.
How does Professional Indemnity Insurance works?
    1. If the company is a professional service provider and there is a dispute related to the service provided. The insurance company will defend the company’s claims up to High court. If the company loses in court then the policy will help pay the charges demanded by the third party for the damages.
    2. The policy helps to fix a problem thus preventing it from becoming a bigger problem.
    3. There is protection on loss of client documents or theft of client’s money.
The other benefits of the policy are:
    1. Assistance of specialized legal teams in defense of claims. This avoids legal costs.
    2. Assistance of advisors and claims staff who understand that particular industry in which the Business is run.
    3. Protecting your profits and reputation as well.
The cost of the cover varies from business to business. Only the company can decide the cover that best suits them.

There is another option in the policy called retroactive. This covers all the part work done before the commencement of the policy. Many companies provide this insurance policy.

Hiscox is one such company. The other companies that provide Professional Indemnity Insurance are AXA, Lloyds TSB.