One situation in the life of an entrepreneur may be that he is accomplished in his field and has set up his own venture. An enterprise where he is the managing director and he is the decision making body. Since no one in this world is flawless so is a business man. There may be an unfortunate situation in his life when he incurs losses and damages either in his own organization or may be in some other business but because of the involvement of his employees and himself in it. What is the best possible solution at this time? Which thing in this world can act your Savior? Who can protect you against losses or who can compensate you for losses? The most obvious and appropriate answer is “Professional Indemnity Insurance”. It is a normal insurance but offered in the professional or business sectors.
The Real Definition
Professional indemnity insurance covers you and your venture against any losses suffered or is anticipated to suffer for the services your organization has provided to any disgruntled or unsatisfied clients. The reasons can be many of negligence, nepotism, insider trading, cheating or swindle to loss of data. The one of the main impact can be accounted as a drop in the value of a share of the client’s organization.
Know The Exact Cover
This insurance covers you against any losses and damages you may suffer financially during lawsuits and payouts. The lawsuit is not only makes you financially handicap but also disfigures your reputation. This insurance will also bear all the costs you have to pay in case you will lose the lawsuit. This insurance has become a part of certain businesses and in some cases it is availed after business advising. The professional indemnity insurance helps you in removing the blot your client may have put on your reputation. This insurance is best for the ventures having a large number of employees that you can’t supervise on every day basis. This insurance covers you even after many years you have delivered the services and it must be taken care that insurance policy is valid. Keep track of any updates in the policy terms and conditions with the insurer.
What Is The Eligibility Criteria?
This insurance is applicable to lawyers, doctors, accountants, architects and the list continue. In fact every profession is covered by this insurance. The premium may be higher in the professions where risks involved are high but the benefits far outweigh these costs. Business men in these high risks fields such as real estate have to face lawsuits day to day and such insurance is always standing for you to fight against any losses.
Where To Search
You really do not have to search for the insurance agent; they are easily available in the financial institutions. You may also ask your present insurance agent whether they also specialize in the professional indemnity insurance. Internet and web browser can be searched for the potential agents in your area.
While starting up your venture or unit you must have registered it with the government agency, they definitely deal in this insurance sphere also. In the end peer group, family circle and coworkers can also be consulted for the reputed insurance agencies. Magazines and directories can also be perused.
Cost and Charges
Professional indemnity insurance costs depend on the coverage. Some professionals think it is useful to cover 100% with this insurance while some may think that covering partially would be a good idea. The rate of insurance is probably .5-1 % of your coverage.
Professional Indemnity Insurance is truly an asset to professionals and their ventures. In other ways they can also be defined as potential business investments which are capable of bearing high profits. You just have to pay monthly or yearly premiums and you can avail the benefits lifelong.