Nov 25, 2011 Posted by admin No Comments » Tags: indemnity insurance

Who needs professional indemnity insurance?

Professional indemnity insurance is designed to provide protection for businesses or individual if a negligence claim is made against them. Some professionals aren’t quite sure as to whether or not they should obtain this sort of insurance. It’s pretty easy to determine your need, however; if, as part of your business, you give advice to clients then you will want to have a professional indemnity insurance policy and you can visit Markel UK for more information about this.

There are a variety of professions that give advice to customers. For instance, consider the job of a management consultant. These professionals provide advice to clients on new marketing strategies to help increase sales of their specialised product. Perhaps the advised marketing strategy does not produce the desired results: in some instances, the customer may file suit for negligence on the part of the management consultant. They may assert that the consultant did not know what they were doing. If the claim is found to be with merit, then the professional could end up paying a sizeable award for damages.

Another example is that of an IT consultant. In their profession, IT consultants provide advice to their clients regarding either software or hardware that will help their business. These can be costly measures to implement. If the advised system or software fails to work properly or cannot handle the volume of the business, again the consultant may be hit with a claim for negligence. The customer may want to recoup some of their losses that they incurred from following the advice of the IT consultant.

Keeping one’s profession safe in times of claim-happy consumers is an important aim for any business entity. Not having professional indemnity insurance can mean potential ruin for a business in the event that a suit is found to be valid and a large monetary award is ordered.

Similar Posts:

Share

Leave a Reply